Busy high-grade primary calendar forecast for week ahead; Enbridge tightens; BP Capital firms

By Cristal Cody

Eureka Springs, Ark., Nov. 23 – Investment-grade issuers took a break on Wednesday. No bonds priced in the primary market as staffing thinned ahead of the U.S. Thanksgiving Day holiday, sources reported.

Strong primary action is likely in the week ahead with about $20 billion to $25 billion of volume forecast, according to market sources. The deal calendar is expected to be heavy up until the Federal Reserve’s Dec. 13-Dec. 14 policy meeting when rates are widely forecast to rise.

Enbridge Inc.’s $1.5 billion of senior notes (Baa2/BBB+/) priced in two parts on Monday traded more than 10 basis points better in the secondary market on Wednesday.

BP Capital Markets plc’s $2 billion notes (A2/A-) brought to market in two tranches on Monday improved about 2 bps from issuance.

In other trading, Duke Energy Corp.’s 2.65% senior notes due 2026 firmed 1 bp on the day.

The three-month Libor yield was up 1 bp to 93 bps on Wednesday afternoon, the highest yield since May 2009, a source said.

The Markit CDX North American Investment Grade index closed mostly unchanged at a spread of 74 bps.

Enbridge tightens

Enbridge’s 4.25% notes due 2026 were stronger on Wednesday in the secondary market at 186 bps bid, 183 bps offered, a source said.

The company sold $750 million of the 10-year notes on Monday at a spread of 200 bps plus Treasuries.

Enbridge’s 5.5% notes due 2046 tightened to 239 bps bid, 236 bps offered in secondary trading.

The 30-year notes priced on Monday in a $750 million tranche at a spread of 250 bps plus Treasuries.

Enbridge Gas is a Toronto-based natural gas distribution company.

BP Capital firms

BP Capital Markets’ 3.216% notes due 2023 traded at 108 bps bid, 106 bps offered on Wednesday, a market source said.

The company sold $1.2 billion of the seven-year notes on Monday at a spread of Treasuries plus 110 bps.

The tranche of 3.723% notes due 2028 were seen at 136 bps bid, 133 bps offered over the day.

The company priced $800 million of the 12-year notes in Monday’s sale at a spread of 140 bps over Treasuries.

BP Capital Markets is a financing arm of London-based oil and gas company BP plc.

Duke Energy improves

Duke Energy’s 2.65% notes due 2026 firmed 1 bp to 111 bps bid in secondary trading on Wednesday, a market source said.

The company sold $1.5 billion of the 10-year notes (Baa1/BBB+/BBB+) on Aug. 9 at a spread of 115 bps plus Treasuries.

The diversified energy company is based in Charlotte, N.C.

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