Investment-grade primary closes on quiet note; bank paper down; credit spreads ease

By Aleesia Forni and Cristal Cody

Virginia Beach, April 17 – The high-grade bond market closed the trading session on Friday with no new deals pricing and as stocks plummeted on intensifying Greece concerns and changes in Chinese market regulations.

In total, around $17.4 billion of high-grade bonds sold this week, coming within predictions of around $15 billion to $20 billion of supply.

Meanwhile, Lipper reported the first outflows of 2015 for corporate investment-grade bond funds.

For the week ended April 15, high-grade bond funds saw $384 million of outflows.

The outflows follow last week’s year-low inflows of $211 million and brings the year-to-date total inflows to $24.95 billion.

Activity in the primary sphere is expected to remain similar in the week ahead, with earnings blackouts continuing to put a hindrance on supply.

Sources are calling for around $15 billion to $20 billion of supply.

Investment-grade bonds and credit spreads traded mostly weaker on Friday, according to market sources.

The Markit CDX North American Investment Grade series 23 index eased 2 basis points to a spread of 64 bps.

In the secondary market, Bank of America Corp.’s 4% notes due 2025 widened 5 bps.

JPMorgan Chase & Co.’s 3.125% notes due 2025 eased 5 bps.

Morgan Stanley’s 2.65% notes due 2020 widened more than 5 bps in trading.

General Electric Capital Corp.’s bonds were unchanged on the week.

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