Morning Commentary: Westpac, Moody’s, ConEd, Charles Schwab prep deals; Bristol-Myers softens

By Cristal Cody

Tupelo, Miss., Feb. 27 – Pricing action is set to be strong in the investment-grade bond market with eight issuers announcing plans on Monday to print new bonds.

Westpac Banking Corp., Moody’s Corp., Textron Inc., RPM International Inc., Consolidated Edison, Inc., Westar Energy, Inc., Charles Schwab Corp. and Alabama Power Co. are in the deal pipeline.

About $20 billion to $25 billion of new issuance is expected over the week, according to a market source.

Issuance was light over the previous week with volume totaling more than $15 billion.

In the secondary market, Bristol-Myers Squibb Co.’s $1.5 billion of senior notes (A2/A+) that priced in two tranches on Wednesday traded modestly weaker early Monday.

Bristol-Myers weakens

Bristol-Myers Squibb’s 1.6% notes due Feb. 27, 2019 opened modesty softer on Monday at 100.05 from where the notes last traded on Friday at 100.10, according to a market source.

The company sold $750 million of the two-year notes on Wednesday at 99.92 to yield 1.641%, or 43 basis points over Treasuries.

Bristol-Myers’ 3.25% notes due Feb. 27, 2027 weakened early Monday to 100.40 from where the notes went out on Friday at 100.43.

The 10-year notes priced in a $750 million tranche on Wednesday at 99.392 to yield 3.322%, or a spread of Treasuries plus 90 bps.

Bristol-Myers Squibb is a New York City-based biopharmaceutical company.

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