NEW YORK, Jan 13 (Reuters) - U.S. and foreign institutions tapped the corporate bond market on Tuesday with a several large deals in one of market's most active periods in seven months, according to IFR.

So far this week, companies have issued nearly $12 billion of fresh debt, continuing a trend that started with the new year.

Companies sold more than $21 billion in corporate debt last week, marking the busiest week for issuance since May 18, when $33 billion was sold, according to Thomson Reuters data.

With hefty investor cash balances, new money flowing in from mutual funds and the relatively better returns from corporate bonds over equities, investors are putting cash to work on new paper with attractive terms.

'It's a buyer's market. New paper is able to move as well as it has over the past few weeks because issuers realize they need to price deals to trade and that's what we're seeing,' one buy-side analyst said.

Goldman Sachs sold $3.5 billion in 2.5-year bonds with the backing of the Federal Deposit Insurance Corp, said IFR, a Thomson Reuters service. The notes yielded 91.5 basis points over comparable U.S. Treasuries.

The deal is part of the government's Temporary Liquidity Guarantee Program, which offers full FDIC backing to deals of no longer than three years by financial institutions. It was launched in December to help unfreeze financing for banks.

Macquarie Bank placed $2.5 billion in three-year notes, in the 144a private placement with registration rights and priced at par to yield 149.9 basis points over comparable U.S. Treasuries, according to IFR, .

The notes are guaranteed by the Australian government.

The joint lead managers on the sale were Barclays, JP Morgan and Merrill Lynch.

African Development Bank sold $1 billion in three-year global notes, according to IFR. The 1.875 percent notes were priced at 99.666 to yield 91.5 basis points over U.S. Treasuries, said IFR, a Thomson Reuters service.

BNP Paribas, Citigroup Global Markets and Goldman Sachs were the joint lead managers on the sale.

Several deals were in the pipeline.

Fast-food restaurant chain McDonald's Corp launched about $750 million in 10-year and 30-year bonds at a yield spread of 270 basis points over comparable Treasuries, said IFR.

Banc of America Securities and J.P. Morgan are lead managers on the deal.

Amgen Inc is set to price a $2 billion two-part sale of 10-year and 30-year bonds, according to IFR. Price guidance on both tranches is for a yield spread of 350 basis points over Treasuries.

Goldman Sachs, Merrill Lynch, and Morgan Stanley are lead managers on the deal.

The Trustees of Princeton University is in the market with a $750 million two-part sale of 10-year and 30 year maturities, according to IFR.

Goldman Sachs, Morgan Stanley and JPMorgan are lead managers on the deal which carries a top 'AAA' rating.

FedEx Corporation is planning a benchmark-size two-part offer of five-year and 10-year maturities, IFR said.

Sun Trust Robinson Humphrey , Goldman Sachs and JPMorgan are lead managers on the deal.

FedEx will use the proceeds to refinance a portion or all of the company's $500 million of 3.5 percent notes maturing in April and a $500 million of 5.50 percent notes maturing in August.

Anglo-Dutch publisher Reed Elsevier's finance arm is planning to sell $1.5 billion in five-year and 10-year notes.

The five-year tranche is expected to price in the 637.5 to 650 basis-point over Treasuries range, while the 10-year tranche is expected to price at 637.5 basis points over Treasuries.

Barclay's, Citi Group, HSBC and J.P. Morgan are lead managers on the deal.

On Monday, the investment-grade primary market absorbed $4.728 billion in five new deals. Last week investment-grade companies sold $23 billion of new paper, while high yield issuer Cablevision Systems Corp. placed $844 million of new bonds.

Cablevision was the first deal to hit the high yield market this year and has traded at a premium since pricing.

(Reporting by Tom Ryan; Editing by Tom Hals) Keywords: CORPBOND SALES

(thomas.j.ryan@thomsonreuters.com; + 646 223 6826; Reuters Messaging thomas.j.ryan.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.