Morning Commentary: MasterCard, HSBC in deal pipeline; Westpac Banking tightens; Goldman flat

By Cristal Cody

Eureka Springs, Ark., Nov. 16 – Investment-grade bond issuers including MasterCard Inc., HollyFrontier Corp. and HSBC Holdings plc plan to tap the primary market, according to reports early Wednesday.

In the secondary market, bank and financial paper was mixed.

Westpac Banking Corp.’s 4.322% fixed-to-floating rate subordinated notes due Nov. 23, 2031 that priced on Tuesday tightened about 6 basis points in secondary trading.

Goldman Sachs Group Inc.’s 3.5% notes due 2026 that priced in the previous week were flat.

Secondary trading volume climbed to $20.28 billion on Tuesday from $18.23 billion on Monday, according to Trace.

The three-month Libor yield was steady at 91 bps early Wednesday.

Westpac Banking firms

Westpac Banking’s 4.322% fixed-to-floating rate subordinated notes due 2031 traded about 6 bps better at 204 bps offered, according to a market source.

The company sold $1.5 billion of the notes on Tuesday at a spread of 210 bps over Treasuries.

The Australian bank and financial services provider is based in Sydney.

Goldman unchanged

Goldman Sachs Group’s 3.5% notes due 2026 were quoted flat early Wednesday at 136 bps offered, according to a market source.

Goldman Sachs sold $2.75 billion of the 10-year notes on Thursday at a spread of 137.5 bps over Treasuries.

Goldman is a New York-based banking, securities and investment management company.

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