Morning Commentary: Broadridge unchanged from issuance; HSBC better; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., June 23 – Investment-grade primary activity remains quiet as market participants focus on the Brexit vote, with results on whether Britain stays in the European Union expected to be known early Friday.

High-grade bonds traded mostly unchanged in the secondary market.

Broadridge Financial Solutions, Inc.’s 3.4% senior notes due 2026 that priced on Tuesday were wrapped around issuance.

HSBC Holdings plc’s 2.95% subordinated notes due 2021 firmed about 2 basis points but have been mostly unchanged from where the bonds priced in May.

The Markit CDX North American Investment Grade index opened about 3 bps tighter at a spread of 76 bps.

The three-month Libor yield was down 1 bp to 64 bps early Thursday.

On Wednesday, $13.85 billion of investment-grade issues were traded, compared to $14.57 billion on Tuesday and $11.67 billion on Monday, according to Trace.

Broadridge unchanged

Broadridge Financial Solutions’ 3.4% senior notes due 2026 were flat at 175 bps offered, a market source said.

The company sold $500 million of the notes (Baa1/BBB+/BBB+) on Tuesday at a spread of 175 bps over Treasuries.

Broadridge Financial is a Lake Success, N.Y.-based producer of goods and services for securities processing, clearing and outsourcing, and investor communications.

HSBC firms

HSBC’s 2.95% notes due 2021 traded about 2 bps tighter at 157 bps offered, according to a market source.

The company sold $2.5 billion of the notes (A1/A/AA-) on May 18 at Treasuries plus 160 bps.

London-based HSBC is a banking and financial services group.

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