Morning Commentary: Strong high-grade supply continues; Corning, Edison, Genpact on tap

By Cristal Cody

Tupelo, Miss., Nov. 14 – The high-grade bond market opened Thursday with several issuers marketing new securities.

Kansas City Southern plans to price two tranches of guaranteed fixed-rate senior notes.

Corning Inc. is offering fixed-rate notes due 2049 and 2079.

Edison International is marketing two tranches of fixed-rate notes. The company plans to price notes due 2022 and 2024.

Genpact Ltd. subsidiary Genpact Luxembourg Sarl announced an offering of registered fixed-rate senior notes after holding fixed income investor calls on Tuesday.

In addition, Nationwide Financial Services Inc. is in the deal pipeline with a Rule 144A and Regulation S offering of 30-year guaranteed senior notes after holding fixed income investor calls on Tuesday and Wednesday, a source said.

Deal volume week to date already totals about $40 billion, near the $45 billion to $50 billion of supply that was forecast for the holiday-shortened week, according to market sources.

In the secondary market, new issues traded mostly tighter, a source said.

AbbVie Inc.’s $30 billion 10-tranche offering of bonds that priced on Tuesday traded about 1 basis point to 10 bps better in secondary trading.

The company’s $5.5 billion tranche of 3.2% notes due Nov. 21, 2029 improved about 4 bps, the source said.

The notes priced at a Treasuries plus 130 bps spread.

Secondary market volume this week has included $21.45 billion of investment-grade corporate bonds traded on Wednesday and $20.71 billion of issues traded on Tuesday, according to Trace data.

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