Morning Commentary: Deal pipeline fills; credit spreads unchanged; Coca-Cola notes improve

By Cristal Cody

Eureka Springs, Ark., Sept. 6 – Investment-grade bond market activity ramped up on Tuesday following the long holiday weekend with at least five issuers expected to tap the market.

Home Depot, Inc., Duke Energy Florida, LLC, Mitsubishi UFJ Financial Group, Inc., Magellan Midstream Partners, LP and the Toronto-Dominion Bank are in the deal pipeline.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 72 basis points.

The three-month Libor yield was stable over the morning at 84 bps.

In the secondary market, Coca-Cola Co.’s 2.25% notes due 2026 (Aa3/AA-/A+) that priced a week ago improved about 2 bps from Friday.

On Friday, secondary trading volume in the high-grade bond market totaled $5.64 billion, according to Trace.

Coca-Cola firms

Coca-Cola’s 2.25% notes due 2026 traded about 2 bps tighter from Friday at 66 bps bid, according to a market source early Tuesday.

Coca-Cola sold $1 billion of the notes on Aug. 29 at a spread of 70 bps over Treasuries.

The beverage company is based in Atlanta.

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