Summary of Investment Grade Utilities Conference Call Industry Overview - The report focuses on the Investment Grade (IG) Utilities sector, analyzing performance metrics and bond issuance trends within the utilities industry. Key Points Performance Metrics - IG Utilities performed in line with the market last week, returning **0.3%** [7] - Best performing HoldCo credits included: - Dominion Energy Inc 4.60% Sr Unsecured notes due 2049 (+1.2%) - American Water Capital Corp 4.30% Sr Unsecured notes due 2042 (+1.2%) - Worst performing HoldCo credits included: - Southern Co. 6.375% Jr Subordinated notes due 2055 (-0.7%) - NextEra Energy Capital Holdings Inc 6.750% Company Guarant notes due 2054 (-0.4%) [2] Operational Company (OpCo) Performance - Best performing OpCo credits included: - Northern States Power Company 3.60% Secured notes due 2046 (+3.1%) - Southern California Gas Co. 4.450% Secured notes due 2044 (+2.5%) - Worst performing OpCo credits included: - Wisconsin Electric Power Company 4.30% Senior notes due 2048 (-0.7%) - Nevada Power Company 6.750% Secured notes due 2037 (-0.6%) [3] Equity Performance - Best performing IG Utility equities were: - PCG (+3.8%) - EIX (+3.1%) - Worst performing IG Utility equities were: - BKH (-7.1%) - VST (-4.2%) [3] Bond Issuance - No utility bond issuance occurred last week - Utilities have issued **$14.1 billion** so far in Q4 - Year-to-date issuance of **$117.5 billion** is ahead of last year's YTD issuance of **$110.2 billion** [4] Sector Indices and Spreads - IG Utility spreads remain **7 basis points** wide of the IG Index [8] - Average spreads by maturity and rating for OpCos show a tight band within rating categories, with the total average spread for 5-10 year bonds at **56 basis points** [10] HoldCo Comp Summary - HoldCo comps trade at a median spread of **6.9 basis points** for <5 year bonds and **9.2 basis points** for 5-10 year bonds [29] Additional Insights - The report indicates a potential conflict of interest as BofA Securities may do business with issuers covered in its research reports [6] - The report emphasizes the importance of considering multiple factors in investment decisions, highlighting the need for comprehensive analysis [6] Conclusion The Investment Grade Utilities sector shows stable performance with a slight increase in bond issuance compared to the previous year. The analysis of both HoldCo and OpCo credits reveals varied performance, indicating potential investment opportunities and risks within the sector.