Morning Commentary: UDR, IADB market notes; Wells Fargo’s new notes tighten

By Cristal Cody

Tupelo, Miss., Oct. 17 – Corporate and SSA investment-grade bond supply is expected over Wednesday’s session from UDR, Inc. and the Inter-American Development Bank.

UDR is offering series A medium-term notes.

IADB plans to price dollar-denominated global floating-rate notes due Oct. 25, 2021.

The notes were initially talked to price in the Libor minus 2 basis points area.

Supply may come in short of market forecasts for the week with more than $11 billion of corporate issuance week to date.

On Tuesday, Wells Fargo Bank NA priced a $3.25 billion two-part offering of bank notes. The notes tightened about 3 bps to 6 bps in the secondary market, a source said.

Conagra Brands, Inc.’s $7.3 billion seven-part offering of senior notes that priced on Monday was mixed in the secondary market with the short-dated notes about 4 bps to 10 bps tighter and the long-dated bonds about 1 bp softer, according to the market source.

About $25 billion to $35 billion of deal volume was forecast for the week following thin supply last week.

While the primary market slowed on Tuesday, secondary trading was heavy with $23.22 billion of investment-grade bonds traded, according to Trace data. On Monday, trading volume totaled $15.22 billion.

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