Morning Commentary: Target long bonds widen; HSBC softens; high-grade credit spreads ease

By Cristal Cody

Eureka Springs, Ark., April 6 – Corporate bonds traded mixed in the investment-grade secondary market early Wednesday, while credit spreads opened the day weaker.

Target Corp.’s senior notes (A2/A/A-) that priced on Monday traded flat to weaker.

HSBC Holdings plc’s 4.3% senior notes due 2026 widened about 5 basis points but remain more than 30 bps tighter than issuance.

The Markit CDX North American Investment Grade index eased 1 bp at the start of Wednesday’s session to a spread of 80 bps.

High-grade bond trading volume rose to $19.9 billion on Tuesday from $14.66 billion on Monday, according to Trace.

Target eases

Target’s 3.625% bonds due 2046 were seen 3 bps wider at 108 bps offered, a market source said.

Target sold $1 billion of the bonds as part of a two-tranche offering on Monday at a spread of Treasuries plus 105 bps.

The discount merchandise retailer is based in Minneapolis.

HSBC widens

HSBC Holdings’ 4.3% notes due 2026 traded about 5 bps wider at 216 bps offered, according to a market source.

HSBC sold $3 billion of the notes (A1/A/AA-) on March 1 at a spread of Treasuries plus 250 bps.

The banking and financial services group is based in London.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.