U.S. corporate bond update: issuance may remain healthy this week
U.S. corporate bond update: issuance may remain healthy this week following $49.5 B in sales last week. But, the market is getting off to a slow start. The start of earnings season may inhibit early on, and geopolitical uncertainties with the U.S. government impasse and Brexit sharing the spotlight, risk is for weaker than expected action. Likely to price today is a benchmark 5-year from KfW. Kommuninvest has a $1 B 3-year. GM Financial has announced a benchmark 4-part deal with a 2-year, a 5-year fixed/FRN, and a 10-year. Charter Communications has a 10- and 30-year offering. Additionally, FedEx plans a $500 M 3-year, while CPPIB Capital has a 2.5-year. Credit spreads tightened Friday with the Bloomberg Barclays index at 147 bps Friday versus 148 bps Thursday.