Another Busy Day In High-Grade Bond Market, $10 Billion Expected

The investment-grade corporate bond market is busy again on Tuesday.

After $12 billion in new deals on Monday, another $10 billion worth of deals may hit the market.

Already, Swiss pharmaceutical giant Novartis AG (NVS) is in the market with a $4 billion three-part bond. Other issuers include Anadarko Petroleum Corp. (APC), with a $750 million 30-year note; TransAlta Corp. (TAC, TA.T), with a $300 million 30-year bond; and Royal Bank of Scotland Group PLC (RBS, RBS.LN), with a benchmark five-year note.

Susquehanna Capital and ProLogis (PLD) are also said to be tapping the market.

"The reason is straightforward--there is a measured response to the calm in the market relating back to concerns over Greece," said Scott MacDonald, director of research at Aladdin Capital Holdings in Stamford, Conn. "There is a cautious perception that sovereign risk has been somewhat reduced and this gives investors a chance to return to the market."

The tone in the high-grade market is "good," said Guy LeBas, chief fixed-income strategist at Janney Capital Markets in Philadelphia.

He pointed out that deals sold on Monday have also tightened in the secondary market.

For instance, DirecTV Group Inc. (DTV), which sold a $3 billion, three-part deal is seeing the five-year bond perform really well, he said.

"The deal sold at tight spreads to begin with," he said.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; [e-mail]