Morning Commentary: Union Pacific, Exelon, Sweden to price; Exelon flat; Verizon improves

By Cristal Cody

Tupelo, Miss., March 29 – A handful of investment-grade issuers are expected to price new bonds on Wednesday.

Union Pacific Corp. is marketing 10- and 30-year notes.

Exelon Corp. plans to enter the primary market with five-year junior subordinated notes in a remarketing.

Amphenol Corp. is offering two tranches of senior notes.

Also, the Kingdom of Sweden intends to price three-year medium-term notes.

In the secondary market, Exelon subsidiary Exelon Generation Co., LLC’s 3.4% senior notes due March 15, 2022 that priced earlier in March were unchanged over the morning.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 traded better at the start of the session.

Secondary trading volume climbed to $18.41 billion on Tuesday from $13.89 billion on Monday, according to Trace.

Exelon stable

Exelon Generation’s 3.4% senior notes due March 15, 2022 were flat at 101.18 on Wednesday, according to a market source.

Exelon priced $500 million of 3.4% notes due March 15, 2022 (Baa2/BBB/BBB) on March 7 at 99.785 to yield 3.447% and a spread of Treasuries plus 140 basis points.

Exelon is a utility services holding company based in Chicago.

Verizon stronger

Verizon Communications’ 4.125% notes due March 16, 2027 rose to 102.16 in early secondary trading on Wednesday, a market source said.

The notes headed out on Tuesday at 101.74.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at 99.256 and a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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