Morning Commentary: Amgen, Bunge notes tighten in secondary market; credit spreads leak wider

By Cristal Cody

Eureka Springs, Ark., Aug. 12 – Investment-grade corporate bonds remained mostly stronger in secondary trading early Friday.

Amgen Inc.’s 2.6% senior notes due 2026 that priced on Wednesday traded about 7 basis points better than issuance.

Bunge Ltd. Finance Corp.’s 3.25% senior notes due 2026 improved more than 10 bps from where the notes priced on Wednesday.

The three-month Libor yield was steady at 82 bps early Friday.

The Markit CDX North American Investment Grade index opened about 1 bp softer at a spread of 72 bps.

On Thursday, $14.58 billion of investment-grade issues were traded, compared to $15.60 billion on Wednesday, $16.17 billion on Tuesday and $12.39 billion on Monday, according to Trace.

Amgen firms

Amgen’s 2.6% senior notes due 2026 were seen early Friday at 103 bps offered in the secondary market, according to a market source.

The company sold $1.25 billion of the notes (Baa1/A) on Wednesday at 110 bps over Treasuries.

Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.

Bunge stronger

Bunge Ltd. Finance’s 3.25% notes due 2026 tightened to 162 bps offered in the secondary market from where the bonds traded at 170 bps offered on Thursday, according to a market source.

Bunge Ltd. Finance priced $700 million of the notes (Baa2/BBB/BBB) on Wednesday at a spread of 175 bps over Treasuries.

The agribusiness and food company is based in White Plains, N.Y.

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