Morning Commentary: Home Depot, ConEd, IBM, Nederlandse Waterschapsbank deals on deck

By Cristal Cody

Tupelo, Miss., Nov. 27 – The High-grade primary market roared to life early Tuesday with a number of bond offerings on deck.

Home Depot, Inc. is marketing four tranches of notes, including one floating-rate issue.

Consolidated Edison Co. of New York, Inc. intends to price two tranches of debentures.

IBM Credit LLC plans to sell fixed- and floating-rate notes.

In addition, Nederlandse Waterschapsbank NV is offering $500 million of senior notes due Dec. 5, 2022 in a Rule 144A and Regulation S offering on Tuesday, according to a market source.

The notes were initially talked to price in the mid-swaps plus 12 basis points area.

On Monday, nearly $4 billion of investment-grade bonds priced.

Market sources expect about $10 billion to $20 billion of issuance this week, but deal volume could be higher depending on market tone.

In the secondary market, trading was heavy on Monday with $21.38 billion of bonds traded, according to Trace.

General Motors Co.’s senior notes (Baa3/BBB/BBB) that priced in September opened weaker following the company’s announcement on Monday that it will close seven production plants and lay off up to about 14,000 employees, a source said.

General Motors’ 5% notes due Oct. 1, 2028 softened to the 94.55 area over the morning from where the notes went out on Monday at 95.72.

The bonds traded at 96.43 on Friday.

The Detroit-based automaker sold $750 million of the 10-year notes on Sept. 5 at 99.965 to yield 5.004%, or a spread of 210 bps over Treasuries.

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