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Gold/Mining/Energy : Conoco (COC) - The biggest U.S. IPO ever -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (95)	4/8/1999 11:25:00 AM
From: Geoff Altman	Read Replies (1) \| Respond to of 123

US CORP BONDS- Mkt edges higher, braces for supply NEW YORK, April 8 (Reuters) - U.S. corporate bond prices were flat to modestly higher in early trade on Thursday, as high-grade dealers prepared for large offerings next week, market players said. Weak supply and interest rate stability has put the investment-grade market in good shape to absorb three jumbo investment-grade offerings next week and a flurry of smaller deals likely to pop up, a syndicate manager said. Offerings of $1 billion or more will begin to become scarcer after next week, the manager predicted. ''Next week is going to be big,'' the syndicate manager said. ''But I'm not expecting a blow-out second quarter.'' Next week may see a $4 billion three-part offering from Conoco Inc. (NYSE:COC - news) and a $1 billion deal from the Korea Development Bank, market sources said. Goldman Sachs & Co. is also seen preparing to sell $1 billion of debt soon. High-grade bond supply edged up 0.47 percent in the first quarter year-over-year, thanks in part to the record-setting $8 billion offering from AT&T Corp. (NYSE:T - news). The syndicate manager predicted a year-over-year dip in second quarter high-grade supply. Many big issuers have already secured the funds they need for the time being, the manager said. Bond issuance will likely remain strong in the telecom industry, where cash is needed for consolidation, he added. Meanwhile, junk bond prices remain on an upward path in the face of thin supply. Narrowing spreads mean the junk bond market is good for issuers right now and less so for total return investors. ''The market seems to be fully priced,'' said the money manager, who focuses on BB-rated names. At current prices, beaten down high-grade oil company bonds are a better value than better-quality junk bonds, the manager said. The manager predicted relative calm in the junk market in the near-term. In high-grades, slightly more than $1 billion of new supply is expected before the end of this week, players said. Aflac Inc., Florida Progress Corp (NYSE:FPC - news), and Union Pacific Resources Group Inc. (NYSE:UPR - news) are still seen coming to market this week. As much as $650 million of high-yield supply also may be offered by the end of this week, players said. Budget Group Inc. (NYSE:BD - news), Condor Systems Inc., and Just For Feet Inc. (Nasdaq:FEET - news) remain possible issuers this week. In other markets mid-morning, Treasuries were virtually unchanged while stocks were down modestly. --------------------------------------------------------------------------------