950818

Corporate bonds fall

in summer doldrums

NEW YORK: US high-grade corporate bonds ende on Thursday of slightly with US Treasuries with trading at a virtual standstill since noon, high-grades traders said.

"We're really in one of those summer doldrums today, the whole flow seems to have slowed down, if we don't get some action early tommorrow that'll be it for the week," said one high-grades trader.

Alex Brown, which issued $110 million of 10-year notes yesterday, tightened. Spreads on most other issues were unchanged by virtue of the lack of trading, dealers said.

Split-rated Parker & Parsley Petroleum Co was the only public issue to price, issuing $150 million of 12 year notes, lead manager Salomon Brothers said.

The notes have a 8.25 percent coupon and were priced at 99.456 to yield 8.323 percent or 175 basis points over comparable US Treasuries.

Non-callable for life, the notes are rated Ba2 by Moody's Investors Service Inc and BBB-minus by Standard & Poor's Corp.

Prices in the junk-bond market were a quarter point lower overall in a day noted for its lack of activity, high-yield traders said.

In the 144A private placement market, Johnstown America Industries Inc priced $100 million of ten-year notes via lead manager Chemical Securities, a source familiar with the deal said.

The senior subordinated notes have an 11.75 percent coupon and priced at par, the source added.

Wednesday's two new public issues, Tembec Finance and Crown Paper, freed to trade on Thursday.

Crown ended the day with a par bid and a 100.125 offer while Tembec had a 99.5 bid against a 99.375 offer, traders said.

In the government market, the 30-year long bond closed down 6/32 at 99-22/32 to yield 6.90 percent.-Reuter