April 5, 2012 / 6:37 PM / 5 years ago

Investment grade issuance below expectations for short week

April 5 (IFR) - The U.S. investment grade new issue market logged $13.268bn from 12 issues for this holiday-shortened week, coming in at the low end of the $15bn area expected, and almost $5bn below the four-week moving average of $18.048bn. Last week was a bit busier at $19bn.

Industrial sector issuers were active in the primary market this week. Seven deals (domestic and yankee) hit the market for $7.743bn, accounting for 58% of the weekly total, led by the USD3bn 3-part trade from Apache Corp.. Domestic, dollar-denominated overseas issuers and financial-institutions group issuers accounted for the remaining 42% of the total. Five deals price for $5.525bn, led by the $1.75bn 3-part from Daimler Finance.

While not included in our totals, one additional deal priced this week in the SSA category, a $2bn trade from the French issuer CADES, while the preferred sector remained super hot with another four deals this week for $950m.

April volume is now at $13.268bn after only a few issuance days. The average estimate IFR market sources anticipated for April was for around $60bn, which is above IFR’s historical April average of $42.209bn in the decade 2001 to 2011 as well as the historical April average for the five years 2006-2011 $52.974bn. The low guess in IFR’s survey came in at $45bn, while the high guess was $85bn.

Year-to-date 2012 investment grade volume is now at $298.073bn from 276 issues, keeping it well ahead of 2011 pace when 223 deals were priced for $277.578bn during the same period.

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