Morning Commentary: High-grade deal pipeline for Monday takes shape; CBS notes soften

By Cristal Cody

Tupelo, Miss., June 26 – Monday’s session looks set for strong primary action although overall the week is expected to be light on bond issuance.

At least seven issuers reported plans to tap the investment-grade bond market on Monday.

CBOE Holdings, Inc. intends to price $300 million of two-year senior notes.

Customers Bancorp, Inc. is marketing five-year senior notes.

CBS Corp. is offering two tranches of guaranteed senior notes.

Voya Financial, Inc. plans to sell seven-year senior notes.

RenaissanceRe Finance Inc. is in the deal pipeline with 10-year guaranteed senior notes.

And Indiana Michigan Power Co. also intends to place senior notes.

In addition, Freddie Mac plans to price a $500 million reopening on Monday of its 1.375% Reference Notes due May 1, 2020.

Light deal volume was forecast for the end of June with syndicate sources expecting about $15 billion of supply for the week.

In the secondary market, CBS’ last issuance of bonds, the 2.9% senior notes due Jan. 15, 2027 (Baa2/BBB), opened softer on Monday. The notes traded early in the session at 95.81. The bonds went out on Friday in the secondary market at 97.65.

The New York-based broadcasting company sold $700 million of the notes on July 6 at 98.35 to yield 3.09% and a spread of 170 basis points over Treasuries.

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