Midday Commentary: Activity to pick up to start December; Advance Auto, Schlumberger notes firm

By Aleesia Forni

Virginia Beach, Dec. 2 - The market's tone was slightly softer to open Monday's session, though sources are predicting an active day for the high-grade bond space.

"Expecting busy day today to begin the month," the source said, noting the market "should stay active [for] the rest of the week."

Recent deals were trading mostly better in the secondary market early Monday, according to a market source.

Advance Auto Parts Inc.'s 4.5% notes due Dec. 1, 2023 were quoted around 5 basis points better compared to levels seen mid-week last week.

Meanwhile, Schlumberger Investment SA's recent sale of 3.65% notes due 2023 traded 3 bps better.

Advance Auto firms

Advance Auto's 4.5% notes due Dec. 1, 2023 traded at 173 bps bid, 169 bps offered, a trader said.

The company (Baa3/BBB-/) sold $450 million of the notes with a spread of 180 bps over Treasuries on Nov. 25.

Advance Auto Parts is an automotive aftermarket parts and accessories retailer based in Roanoke, Va.

Schlumberger better

Schlumberger Investment's 3.65% senior notes due 2023 traded on Monday at 84 bps bid, a trader said.

The company (A1) sold $1.5 billion of the 10-year notes on Nov. 25 with a spread of 95 bps over Treasuries.

Schlumberger Investment is a subsidiary of Houston-based Schlumberger Ltd., which supplies technology, integrated project management and information solutions to customers in the oil and gas industries.

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