Morning Commentary: High-grade bond deal pipeline strong; Cox tightens; Shell firms; CDX eases

By Cristal Cody

Eureka Springs, Ark., Sept. 13 – Tuesday’s session promises to see strong primary action in the high-grade bond market with nine reported issuers in the deal pipeline.

Duke Energy Progress, LLC, United Airlines, Inc., Cisco Systems, Inc., Nvidia Corp., Liberty Property LP, Altria Group, Inc., Washington Gas Light Co., World Bank and Kommunalbanken are marketing bond deals.

In the secondary market, Cox Communications Inc.’s 3.35% senior notes due 2026 traded about 1 basis point tighter early Tuesday and about 5 bps better than where the bonds priced on Thursday.

Shell International Finance BV’s 2.5% guaranteed senior notes due 2026 that priced in the previous week improved 2 bps in secondary trading.

The Markit CDX North American Investment Grade index opened the session about 1 bp softer at a spread of 74 bps.

The three-month Libor yield was unchanged at 85 bps on Tuesday.

On Monday, $12.55 billion of investment-grade bonds were traded, according to Trace.

Cox tightens

Cox Communications’ 3.35% senior notes due 2026 firmed about 1 bp to 170 bps bid in secondary trading, according to a market source.

Cox sold $1 billion of the 10-year senior notes (Baa2/BBB/BBB+) on Thursday at a spread of 175 bps over Treasuries.

Cox Communications is an Atlanta-based media and cable company and subsidiary of Cox Enterprises Inc.

Shell firms

Shell International Finance’s 2.5% notes due 2026 traded 2 bps tighter at 106 bps bid in the secondary market, a source said.

Shell International Finance sold $1 billion of the notes (Aa2/A) as part of a five-tranche offering on Wednesday at 108 bps over Treasuries.

The notes are guaranteed by The Hague, the Netherlands-based oil and gas company Royal Dutch Shell plc.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.