Morning Commentary: Disney notes firm in early secondary trading; Biogen tightens

By Cristal Cody

Tupelo, Miss., Sept. 16 – New investment-grade bonds continued to trade mostly stronger early Wednesday ahead of the closely watched Federal Reserve rate decision expected on Thursday.

Walt Disney Co.’s new senior notes (A2/ A/A) traded 1 basis point to 2 bps tighter than where the bonds headed out on Tuesday.

Biogen Inc.’s 4.05% senior notes due 2025 firmed 2 bps in early secondary trading.

The three-month Libor yield was unchanged at 34 bps on Wednesday.

The Markit CDX North American Investment Grade index closed 1 bp tighter on Tuesday at a spread of 79 bps.

Disney improves

Walt Disney’s 2.15% notes due 2020 were quoted early Wednesday tighter at 65 bps offered in the secondary market, a source said.

The notes traded late Tuesday at 69 bps bid, 66 bps offered.

Walt Disney sold $750 million of the notes on Monday at a spread of Treasuries plus 70 bps.

The company’s 3.15% notes due 2025 traded over the morning at 91 bps offered, tighter than where the notes headed out in the previous session at 96 bps bid, 93 bps offered.

Walt Disney sold $750 million of the notes at 100 bps over Treasuries in Monday’s offering.

The entertainment and media company is based in Burbank, Calif.

Biogen tightens

Biogen’s 4.05% notes due 2025 traded 2 bps tighter at 175 bps offered, according to a market source.

The company sold $1.75 billion of the notes (Baa1/A-) on Thursday at 185 bps over Treasuries.

Biogen is a biopharmaceutical company based in Cambridge, Mass.

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