Morning Commentary: Home Depot improves; Automatic Data Processing tight in early trading

By Cristal Cody

Tupelo, Miss., Sept. 10 – New investment-grade bonds priced over the week remained stronger in early secondary trading on Thursday.

Home Depot Inc.’s 3.35% senior notes due 2025 firmed about 1 basis point.

Automatic Data Processing Inc.’s 3.375% senior notes due 2025 traded 10 bps tighter than where the notes priced on Tuesday.

Goldman Sachs Group Inc.’s new 2.75% senior notes due 2020 continued to trade better than issuance.

The Markit CDX North American Investment Grade index closed on Wednesday 2 bps wider at a spread of 81 bps.

Home Depot firms

Home Depot’s 3.35% notes due 2025 firmed about 1 bp to 109 bps offered, a market source said.

Home Depot sold $1 billion of the notes (A2/A/A) on Tuesday at a spread of Treasuries plus 117 bps.

The home improvement retailer is based in Atlanta.

ADP notes tighten

Automatic Data Processing’s 3.375% notes due 2025 remained tight in the secondary market at 110 bps offered, according to a source.

The company sold $1 billion of the notes (Aa3/AA) on Tuesday at a spread of Treasuries plus 120 bps.

The Roseland, N.J.-based company provides business process outsourcing services, including payroll and benefits administration services.

Goldman better than issuance

Goldman Sachs’ 2.75% notes due 2020 were seen early Thursday at 123 bps offered in the secondary market, a source said.

Goldman Sachs sold $1.25 billion of the notes on Tuesday (A3/A-/A) at Treasuries plus 127 bps.

The financial services company is based in New York City.

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