uploads///Total IG Bond Issuance in Week Ending Jun

Commonwealth Edison Issued the Most High-Grade Bonds

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Deals overview

US corporates dominated the primary market for high-grade bonds in the week ending June 24. They accounted for 94.5%, or $2.6 billion, of all the issues. US financials made up 5.5% of the total issuance.

The week ending June 24 brought the year-to-date issuance of high-grade corporate bonds to $865.8 billion.

Issuances by high-grade corporates form part of mutual funds and ETFs like the Strategic Advisers Core Income Fund (FPCIX), the Prudential Total Return Bond Fund – Class A (PDBAX), the Vanguard Total Bond Market Index Fund (BND), the iShares 1-3 Year Credit Bond Fund (CSJ), and the SPDR Barclays Short Term Corporate Bond ETF (SCPB).

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Details of Commonwealth Edison Company’s issue

Commonwealth Edison Company is a unit of Exelon Corporation (EXC). It issued A2/A- rated high-grade bonds worth $1.2 billion through two parts on June 20:

  • $500 million in 2.6% ten-year FMB notes issued at a spread of 87.5 basis points over similar-maturity Treasuries
  • $700 million in 3.7% 30-year FMB bonds issued at a spread of 120 basis points over similar-maturity Treasuries

Details of New York and Presbyterian Hospital

New York and Presbyterian Hospital issued Aa2/AA rated high-grade bonds worth $850 million through three parts on June 21:

  • $250 million in 3.6% 20-year bonds issued at a spread of 105 basis points over similar-maturity Treasuries
  • $350 million in 4.1% 40-year bonds issued at a spread of 155 basis points over similar-maturity Treasuries
  • $250 million in 4.8% 100-year bonds issued at a spread of 225 basis points over similar-maturity Treasuries
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Details of Broadridge Financial Solutions’ issue

Broadridge Financial Solutions (BR) issued high-grade bonds worth $500 million on June 21. The single-tranche Baa1/BBB+ rated ten-year issue was raised at a coupon of 3.4%. The high-grade bonds were issued at a spread of 175 basis points over similar-maturity Treasuries.

Details of Republic Services’ issue

Republic Services (RSG) issued high-grade bonds worth $500 million on June 20. The single-tranche Baa3/BBB+ rated ten-year issue was raised at a coupon of 2.9%. High-grade bonds were issued at a spread of 125 basis points over similar-maturity Treasuries.

In the next part, we’ll look at investment-grade bond fund flows.

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