Morning Commentary: HSBC mostly unchanged; Dell softens; credit spreads steady at market open

By Cristal Cody

Eureka Springs, Ark., May 20 – Investment-grade bonds were mixed in the secondary market on Friday.

HSBC Holdings plc’s subordinated notes (A1/A/AA-) that priced on Wednesday traded flat to 1 basis point tighter on Friday.

Dell, Inc.’s senior secured notes (Baa3/BBB-/BBB-), which priced on Tuesday, were softer in the secondary market early Friday.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 85 bps.

Secondary trading volume rose to $17.78 billion on Thursday, compared to $16.47 billion on Wednesday, $15.03 billion on Tuesday and $11.67 billion on Monday, according to Trace.

HSBC mostly flat

HSBC’s 2.95% notes due 2021 were mostly unchanged in secondary trading at 159 bps offered, according to a market source.

The company sold $2.5 billion of the notes on Wednesday at Treasuries plus 160 bps.

HSBC’s 3.9% notes due 2026, which priced in a $2.5 billion tranche at Treasuries plus 210 bps on Wednesday, traded flat to 1 bp better in the secondary market at 209 bps offered, a source said.

London-based HSBC is a banking and financial services group.

Dell eases

Dell’s 6.02% notes due 2026 eased more than 5 bps in the secondary market to 422 bps offered, a source said.

The company sold $3.75 billion of the notes on Tuesday at Treasuries plus 425 bps.

Dell is a Round Rock, Texas-based technology and services company owned by founder, chairman and chief executive officer Michael S. Dell, MSD Partners and Silver Lake.

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