The primary market has entered a state of virtual permafrost as we record another week of dismal volumes. International Paper's $1 billion 10-year deal was the only corporate issue of note in a week that saw just $2.5 billion in issuance. The IP issue was upsized from an originally intended $750 million and tightened a couple of bp on the break, indicating that there is a degree of pent up demand in the market. Those issuers who meet the desired criteria as regards ratings stability and appealing spread have less need to issue however, in this economic environment and so the current depressed volumes are likely to be with us into year end.
Analysis by CreditSights, Inc., an independent online credit research platform. Call (212) 340-3888 or visit www.CreditSights.com for more information.