Morning Commentary: New investment-grade bond supply on tap; General Motors Financial improves

By Cristal Cody

Tupelo, Miss., April 10 – At least two investment-grade issuers plan to price new bonds on Monday.

Darden Restaurants, Inc. is offering senior notes, while General Motors Financial Co., Inc. is marketing a three-part bond deal.

About $10 billion of weekly deal volume is expected by syndicate sources with supply expected to be front-loaded over the shortened holiday week.

The bond markets will close early on Thursday and will be closed for the full day on Friday for the Good Friday holiday.

General Motors Financial’s senior notes (Ba1/BBB-/BBB-) that priced in January traded mostly better in early secondary trading on Monday.

The three-month Libor yield was unchanged at 1.16% early Monday.

On Friday, $12.68 billion of high-grade bonds were traded, according to Trace.

GM Financial improves

General Motors Financial’s 3.45% notes due Jan. 14, 2022 improved to 100.74 in early secondary trading from 100.49 on Friday, a market source said.

The company sold $1.25 billion of the five-year notes on Jan. 11 at 99.868 to yield 3.479% and a spread of Treasuries plus 160 basis points.

General Motors Financial’s 4.35% notes due Jan. 17, 2027 were better at 101.50 on Monday from where the notes traded before the weekend at 100.16.

The company priced $750 million of the 10-year notes at 99.855 to yield 4.368%, or Treasuries plus 200 bps, in the Jan. 11 offering.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

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