JPMorgan, Starbucks, Textron, Duke Indiana sell paper as market recovers; credit spreads firm

By Cristal Cody

Tupelo, Miss., March 10 – After the rollercoaster ride in the financial markets on Monday sent stocks teetering and credit spreads more than 30 basis points wider, issuers found a window on Tuesday to price $5.2 billion of high-grade bonds.

JPMorgan Chase & Co. priced $2.25 billion of six-year fixed-to-floating rate senior notes.

Starbucks Corp. sold $1.75 billion of senior notes in three tranches.

Duke Energy Indiana, LLC brought $550 million of 30-year first mortgage bonds to the primary market.

Textron Inc. priced $650 million of 10-year notes.

There was no issuance on Monday with stock indexes down 7% and Treasury yields at new all-time lows. Equities rebounded on Tuesday with the indexes all up nearly 5% in response to the U.S. president’s economic stimulus response measures.

Treasuries gave back some of the gains during the session with the benchmark 10-year note yield finishing up 24.9 bps at 0.748%.

Investment-grade credit spreads also gained some ground after widening over 30 bps on Monday.

The Markit CDX North American Investment Grade 33 index firmed more than 7 bps to close Tuesday at a spread of 106.2 bps.

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