Morning Commentary: Primary action on way; Waste Management tightens; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., May 10 – Investment-grade primary action is expected to stay strong over Tuesday’s session with several issuers lining up, including Regions Financial Corp. and American Tower Corp.

In the secondary market, Waste Management, Inc.’s 2.4% senior notes due 2023 that priced on Monday traded more than 20 basis points better than issuance.

The Markit CDX North American Investment Grade series 23 index was 1 bp tighter at a spread of 84 bps at the start of the day.

The three-month Libor yield was stable at 63 bps.

On Monday, $14.17 billion of investment-grade issues were traded, according to Trace.

Waste Management’s 2.4% notes due 2023 were quoted at 67 bps offered in the secondary market, a source said.

The company sold $500 million of the notes (Baa2/A-/BBB) on Monday at a spread of 90 bps over Treasuries.

Waste Management is a Houston-based provider of waste collection, transfer, recycling and resource recovery and disposal services.

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