Morning Commentary: American Electric, TJX, Stryker, EBRD to tap high-grade primary

By Cristal Cody

Tupelo, Miss., Nov. 18 – Strong pricing action is expected for a third consecutive day in the primary market with more than $30 billion of high-grade bonds already priced week to date, sources report.

American Electric Power Co., Inc. is offering three tranches of senior notes (Baa1/BBB+) that include one floating-rate tranche.

TJX Cos., Inc. plans to bring two tranches of fixed-rate senior notes (A2/A) to the primary market on Wednesday. The company is offering notes due in 2028 and 2031.

Stryker Corp. is offering fixed-rate three-year notes (Baa1/A-) during the session.

In addition, the European Bank for Reconstruction and Development (Aaa/AAA/AAA) is on deck with a $1 billion offering of five-year global notes on Wednesday.

The notes are initially talked to price in the mid-swaps plus 8 basis points area.

Volume was heavy on Tuesday in one of the busiest sessions in months in both the corporate and sovereign, supranational and agency space, sources note.

About $25 billion to $30 billion of high-grade supply was forecast for the week.

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