Hot high-grade keeps up momentum with near USD9bn day

martes 1 de abril de 2014 18:34 GYT

By Danielle Robinson

NEW YORK, April 1 - Financials and utilities dominated a busy day in the US high-grade market on Tuesday, with nearly USD9bn raised in what continue to be virtually perfect conditions for borrowers.

With earnings blackout periods looming for corporates, eight issuers seized the moment to price USD8.8bn in new issuance, pushing the week's two-day total to a hefty USD13.425bn.

Highlights included a 100-year bond by Massachusetts Institute of Technology and a USD2.5bn offering of 10 and 30-year securities by Saudi Electricity that saw almost USD13bn of orders.

Strong demand also followed Union Electric d/b/a Ameren Missouri, which saw some USD2bn of orders at the peak for just USD350m of 10-year notes.

The securities priced tighter than the T+83bp level at launch on higher-rated (Aa2/A/A+) MidAmerican Energy Co's 10.5-year transaction the day before.

On the FIG side, Deutsche Bank, Citigroup and NY Life Global Funding pounced on a surge of demand for investment-grade bonds to price senior unsecured transactions at aggressive levels.

Dovish comments from new Federal Reserve chairwoman Janet Yellen on Monday combined with a booming equity market, end of quarter buying, low dealer inventories and diminished supply heading into earnings blackout periods to create ideal issuance conditions.

"Things are just flying off the shelf again," one head of debt syndicate told IFR. "The strength of deals today is just reflective of the markets over the past few days."   Continuación...