Morning Commentary: Export Development Canada markets bonds; Ecolab, CSX notes improve

By Cristal Cody

Eureka Springs, Ark., Oct. 14 – The investment-grade primary market is set to stay active over Friday’s session with a dollar bond offering from Export Development Canada, while new bonds priced in the previous session firmed in the secondary market.

Ecolab Inc.’s 2.7% notes due 2026 tightened about 4 basis points in secondary trading.

CSX Corp.’s notes (Baa1/BBB+) that priced on Thursday traded about 1 bp to 2 bps better.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 76 bps.

The three-month Libor yield was stable at 88 bps early Friday.

On Thursday, $17.8 billion of investment-grade issues were traded, compared to $16.69 billion on Wednesday and $15.4 billion on Tuesday, according to Trace.

Ecolab tightens

Ecolab’s 2.7% notes due 2026 firmed about 4 bps to 96 bps offered in secondary trading, according to a market source.

The company sold $750 million of the 10-year notes (Baa1/A-) on Thursday at a spread of 100 bps over Treasuries.

The cleaning and sanitizing company is based in St. Paul, Minn.

CSX modestly better

CSX’s 3.8% notes due 2046 traded about 1 bp tighter at 134 bps offered, according to a market source.

The company sold $800 million of the 30-year notes on Thursday at a 135 bps spread over Treasuries.

The transportation company is based in Jacksonville, Fla.

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