Highlights from the Week in Corporate Credit:
November 11 – 15, 2019

Global credit retreated from year-to-date highs after lackluster macroeconomic data, lack of meaningful trade progress and a glut of primary supply tempered recent investor enthusiasm. Spreads finished the week 1-3bp wider even as stock markets reached new highs. Drug manufacturer AbbVie’s new $30bn bond deal to finance the recent Allergen acquisition dominated headlines and trading throughout the week and led the way on $51 billion of total US dollar corporate issuance.  Investors were keen to own the highly liquid AbbVie deal, and it finished the week outperforming the general market by up to 15 bp.

Canadian credit markets bucked the global trend to finish the week slightly better.  Investors here were similarly preoccupied with the primary market, with $1.8bn printed across four issuers. Saputo Inc and Manulife Bank of Canada both issued 400-500mm senior investment-grade deals while Inter Pipeline issued a 700mm 60-year hybrid bond. On the HY front, Cascades snuck in a $175mm 5-year deal at a coupon of 5.125%. Most deals were generally 2-5 bp tighter, outperforming secondary markets.