Midday Commentary: Secondary market activity muted; GE Capital, Starwood trade better

By Aleesia Forni

Columbus, Ohio, Dec. 6 - Investment-grade deals that hit the market on Wednesday were mostly tighter to unchanged during a muted session in the secondary market Thursday, a trader said.

Both fixed-rate note tranches from General Electric Capital Corp. were 5 basis points better on the day, while Humana Inc.'s new notes were unchanged at midday.

Meanwhile, Starwood Hotels & Resorts Worldwide Inc.'s 3.125% 10-year notes, which also hit the market on Wednesday, tightened 3 bps.

GE Capital firms

General Electric Capital's $1 billion tranche of 1% three-year fixed-rate notes was quoted 5 bps tighter at 67 bps bid, 62 bps offered, a trader said at midday.

The notes were sold with a spread of Treasuries plus 72 bps on Wednesday.

The $300 million of 2.1% seven-year notes also tightened 5 bps to 105 bps bid, 100 bps offered after pricing with a spread of 110 bps over Treasuries, the trader added.

General Electric Capital is a Norwalk, Conn.-based funding unit of General Electric Co.

Humana notes flat

In other trading, the two-part deal from Humana was unchanged as of midday, the trader said.

The $600 million tranche of 3.15% 10-year notes was seen trading at 160 bps bid, 157 bps offered.

The notes priced with a spread of Treasuries plus 160 bps on Wednesday.

The company also sold $400 million of 4.625% 30-year bonds with a spread of 185 bps over Treasuries, and those notes were quoted at 185 bps bid, 182 bps offered.

Humana is a Louisville, Ky.-based health care and insurance company.

Starwood trades better

Starwood Hotels & Resorts' $350 million of 3.125% 10-year senior notes firmed 3 bps to 155 bps bid during the session.

The Stamford, Conn-based hotel and leisure company came to market Wednesday to sell the notes with a spread of Treasuries plus 158 bps.

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