The exceptionally low primary market volume this week resulted from a combination of summer doldrums, post July 4 hangover and the ongoing market dislocation as the equity meltdown continues. Examples of cancelled deals are growing, such as Merck's decision this week not to proceed with the planned bond sale for Medco on the back of the postponement of the IPO. With risk appetite minimal at best and non-existent for any company that is under an accounting cloud, primary market conditions are not conducive to placing the kind of deals that always took more legwork even at the best of times. Exemplary borrowers such as Wal-Mart however, are having little trouble with market access with WMT able to price $1 billion of 5-years at +50 this week. Total investment grade issuance for the week was just under $4 billion, making it one of the slowest weeks of the year.
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