Morning Commentary: Investment-grade primary action quiets; Nordstrom bonds active

By Cristal Cody

Tupelo, Miss., June 9 – High-grade bond market activity stayed mostly quiet early Friday with no reported issuers in the deal pipeline for the day.

More than $15 billion of bonds have priced week to date.

Primary action began to slow on Thursday with market attention focused on former FBI director James Comey’s Senate testimony and the United Kingdom’s general election.

In the secondary market, Nordstrom Inc.’s bonds have been active on reports that members of the founding family are considering taking the company private.

Nordstrom’s 4% notes due March 15, 2027 softened to 99.16 on Friday morning from 99.24 on Thursday and 102.40 on Tuesday. Nordstrom sold $350 million of the notes on March 6 at 99.624 to yield 4.046%, or Treasuries plus 155 basis points.

Nordstrom’s 5% notes due Jan. 15, 2044 traded early Friday at 96.87, up from 96.80 on Thursday. The bonds traded at the start of the week at 97.74.

Nordstrom priced a $300 million add-on to the notes on March 6 at 95.557 to yield 5.312% and a Treasuries plus 220 bps spread. Nordstrom originally sold $400 million of the bonds on Dec. 3, 2013 at 99.331 to yield 5.043%, or Treasuries plus 120 bps.

The fashion specialty retailer is based in Seattle.

Overall secondary market volume totaled $15.57 billion on Thursday, compared to $18.77 billion on Wednesday, $17.62 billion on Tuesday and $12.79 billion on Monday, according to Trace.

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