Morning Commentary: High-grade deal pipeline fills; Kroger mixed; secondary bond volume rises

By Cristal Cody

Eureka Springs, Ark., Sept. 28 – Three high-grade bond issuers reported plans on Wednesday to tap the primary market.

American Tower Corp., Entergy Louisiana, LLC and HSBC Holdings plc are in the deal pipeline.

In the secondary market, Kroger Co.’s new senior notes (Baa1/BBB/BBB) that priced on Monday were mixed in early trading.

The three-month Libor yield was stable early Wednesday at 85 basis points.

Secondary trading volume totaled $18.1 billion on Tuesday, up from $12.79 billion on Monday, according to Trace.

Kroger mixed

Kroger’s 2.65% notes due 2026 softened about 2 bps to 112 bps offered in secondary trading, according to a market source.

Kroger sold $750 million of the notes on Monday at a spread of 110 bps over Treasuries.

The company’s 3.875% notes due 2046 traded about 1 bp tighter at 153 bps offered.

Kroger priced $500 million of the bonds on Monday at Treasuries plus 155 bps.

Kroger is a Cincinnati-based grocery retailer.

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