Morning Commentary: Home Depot, Public Service Enterprise, Wintrust Financial on tap

By Cristal Cody

Tupelo, Miss., June 3 – A handful of issuers announced plans early Monday to tap the high-grade bond primary market.

Home Depot, Inc. is marketing new 10-year notes and an add-on to its 3.9% notes due June 15, 2047 that were first issued June 5, 2017.

Public Service Enterprise Group Inc. is offering five-year senior notes.

Also, Wintrust Financial Corp. intends to price 10-year subordinated notes.

About $10 billion to $15 billion of issuance is forecast this week, though issuance will be dependent on market tone and geopolitical events, including U.S. trade wars with China, Mexico and other countries, sources report.

For June, syndicate sources expect about $85 billion of deal volume.

In other activity on Monday, A.P. Moller-Maersk A/S (Baa3/BBB) continues a roadshow in London and New York that started on Friday for a dollar-denominated Rule 144A and Regulation S offering of notes. The fixed income investor meetings are scheduled to conclude on Tuesday.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. are the bookrunners.

Investment-grade deal volume was thin last week and missed market forecasts with nearly $6 billion of bonds priced, compared to the $10 billion to $15 billion of issuance predicted.

Elsewhere in the secondary market, trading volume ended Friday with $20.71 billion of high-grade bonds traded, compared to $8.4 billion of bonds traded before the markets closed early in the same period a week ago on May 24, according to Trace.

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