Spreads tighten as supply slows

With plenty of cash still flowing into the corporate bond sector but supply at a mere trickle compared to the first quarter, issuers are able to be aggressive with their pricing and still see deals perform in the secondary market. Danish energy firm Dong priced a dual tranche deal flat to its outstanding transactions and to recent comparable deals, while yesterday’s five year trade from LVMH has continued to tighten in the secondary market. Bankers expect today’s seven year transaction from Atlantia, the holding company for Autostrade, which is being marketed at 270bp to 285bp over mid-swaps, to perform just as well. To find out how this and all the deals in the market this week performed, read EuroWeek on Friday.