Morning Commentary: Dell better; Aetna edges tighter; Libor yield drops; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., June 8 – Investment-grade bonds traded mostly better in the secondary market early Wednesday, while primary action remains strong with several issuers including Peapack-Gladstone Financial Corp. and Under Armour, Inc. in the day’s deal pipeline.

Dell, Inc.’s senior secured notes (Baa3/BBB-/BBB-) continue to be active in the secondary market. The company’s 6.02% notes due 2026 were seen trading 3 basis points tighter early Wednesday.

Aetna Inc.’s 3.2% senior notes due 2026 traded about 1 bp better.

The three-month Libor yield was down 2 bps to 66 bps over the morning.

The Markit CDX North American Investment Grade index opened the session about 1 bp tighter at a spread of 73 bps.

On Tuesday, $16.9 billion of investment-grade issues were traded, compared to about $13.17 billion of bonds traded on Monday, according to Trace.

Dell firms

Dell’s 6.02% notes due 2026 traded 3 bps tighter at 397 bps offered on Wednesday, a market source said.

The company sold $3.75 billion of the notes on May 17 at Treasuries plus 425 bps.

The technology and services company is based in Round Rock, Texas.

Aetna improves

Aetna’s 3.2% notes due 2026 traded about 1 bp tighter at 140 bps offered, according to a market source.

The company sold $2.8 billion of the notes (Baa2/A/A-) on Thursday at Treasuries plus 145 bps.

The diversified health care benefits company is based in Hartford, Conn.

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