(Bloomberg) -- Blue-chip corporates are lining up to sell US investment-grade debt as companies emerge from earnings blackout periods and before the Federal Reserve meets later this week.Â
Morgan Stanley, Hyundai Capital America and Bristol-Myers Squibb Co. have all announced deals, according to people familiar with the situation, who asked not to be identified as the details are private. There are 12 high-grade issuers in the market on Monday, marking the busiest day for issuance since 20 deals were brought on Sept. 5, just after the Labor Day holiday in the US, data compiled by Bloomberg News shows.
Stocks are rebounding, US high-grade spreads tightened two basis points last week and the spread on a high-grade index of credit default swaps is trading 0.68 basis point lower, signaling that the market's perception of risk is easing. All three point to a better backdrop for bond sales in the run up to the Fed's interest-rate decision on Wednesday.Â
Morgan Stanley is marketing a four-part deal with the longest portion — an 11-year fixed-to-floating rate note — being discussed in the area of 187.5 basis points. Hyundai is selling bonds in three parts with initial price talk on its long five-year fixed-rate tranche in the 205 basis points area. Meanwhile, Bristol Myers Squibb's four-part transaction could offer investors 160 to 165 basis points on its 40-year fixed-rate tranche.
Bloomberg is in the process of reaching out to the companies.Â
More issuers may emerge as they exit earnings blackouts. Syndicate desks forecast around $15 billion to $20 billion of US high-grade bond sales this week, after rate volatility sidelined sales earlier this month. October volume stands at around $56 billion so far, compared to earlier estimates of about $85 billion.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.