Morning Commentary: High-grade supply thin; Pershing Square plans to sell senior notes

By Cristal Cody

Tupelo, Miss., Oct. 26 – The high-grade bond market saw thin activity at the open on Monday.

Pershing Square Holdings, Ltd. (BBB+/BBB) is marketing up to $500 million of senior notes due no later than 2031 in a Regulation S offering on Monday.

In other primary action, Bank of New York Mellon Corp. plans to price noncumulative perpetual preferred stock (Baa1/BBB) that will reset March 20, 2026.

The high-grade space remained positive over the morning while stocks declined.

The Pimco Investment Grade Corporate Bond index improved 0.16% to 114.87.

The iShares iBoxx Investment Grade Corporate Bond ETF rose 0.12% to 134.78.

Stocks were down at the open on Monday as coronavirus infections resurge in the United States and across Europe. The Dow Jones industrial average was off 2.31%, while the S&P 500 declined 1.88% in early trading.

Light investment-grade deal supply is expected by market participants this week with numerous companies still in earnings-related reporting blackout periods.

About $15 billion of high-grade bond supply is anticipated this week, according to syndicate sources.

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