The primary market picked up again on some moderate stabilization in secondary market spreads. For the week, $10.75 billion of investment- grade corporate bonds hit the market. The demand was once again concentrated at the higher end of the ratings spectrum, with the two-tranche $3.5 billion deal for triple-A General Electric Capital Corporation reportedly seeing $6 billion in total demand. This is largely attributable to the strong technical position in corporates with investors having significant money to put to work as mutual fund inflows have continued despite the market volatility. Other notable investment-grade deals were the two-tranche $3.5 billion deal for General Mills, which was also reportedly well oversubscribed, and deals for Duke Capital and Citigroup. The high-yield market also bounced, with $1.2 billion in paper priced.
Analysis by CreditSights, Inc., an independent online credit research platform. Call (646) 658-8404 or visit www.CreditSights.com for more information.