Morning Commentary: Investment-grade bond deal pipeline fills; Verizon weakens; Humana flat

By Cristal Cody

Tupelo, Miss., March 21 – Following light issuance on Monday, primary action is set to pick up on Tuesday with several companies reporting plans to price investment-grade bonds.

Southern California Edison Co., BlackRock, Inc., ING Groep NV, Medtronic, Inc. and Medtronic Global Holdings SCA, are in the deal pipeline.

About $20 billion to $25 billion of high-grade bond volume is expected over the week.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 softened in secondary trading over the morning.

Humana Inc.’s 3.95% senior notes due 2027 were unchanged.

On Monday, $13.7 billon of investment-grade bonds were traded, according to Trace.

Verizon slips at open

Verizon Communications’ 4.125% notes due March 16, 2027 softened in secondary trading as the market opened on Tuesday to 101.34, according to a market source.

The notes went out on Monday at 102.59.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at 99.256 and a spread of Treasuries plus 160 basis points.

The telecommunications company is based in New York City.

Humana notes steady

Humana’s 3.95% senior notes due 2027 were unchanged early Tuesday at 101.72, a market source said.

Humana sold $600 million of the 10-year notes (Baa3/BB+/BBB) on March 13 at 99.877 to yield 3.965%, or Treasuries plus 135 bps.

The health care and insurance company is based in Louisville, Ky.

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