Morning Commentary: Enbridge, Bank of America prep deals; bonds mixed; Abbott Labs better

By Cristal Cody

Eureka Springs, Ark., Nov. 21 – About $5 billion to $10 billion of high-grade bond volume is expected over the shortened Thanksgiving Day holiday week with several issuers out marketing deals on Monday.

Enbridge Inc. plans a two-part offering of senior notes, while Bank of America Corp. intends to bring fixed- and floating-rate subordinated notes.

Investment-grade bonds were mixed in the secondary market.

Abbott Laboratories’ 3.75% senior notes due 2026 tightened about 4 basis points.

Chevron Phillips Chemical Co. LLC’s new 3.4% senior notes due 2026 were quoted trading about 2 bps to 3 bps softer from where the notes were seen on Friday.

The three-month Libor yield rose 1 bp from Friday to 92 bps on Monday.

Abbott improves

Abbott Laboratories’ 3.75% notes due 2026 improved to 149 bps offered in the secondary market, a source said.

The notes (Baa3/A+) traded on Friday at 156 bps bid, 153 bps offered.

Abbott Laboratories sold $3 billion of the notes on Thursday at a spread of 155 bps over Treasuries.

The pharmaceutical health care products company is based in Abbott Park, Ill.

Chevron Phillips eases

Chevron Phillips Chemical’s 3.4% senior notes due 2026 softened to 110 bps offered in secondary trading, a source said.

The notes (A2/A-) were quoted on Friday at 109 bps bid, 107 bps offered.

The company sold $700 million of the 10-year notes on Thursday at a spread of 115 bps over Treasuries.

Chevron Phillips Chemical is a Woodlands, Texas-based petrochemical company owned by Chevron Corp. and Phillips 66.

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