Morning Commentary: Issuers ready supply; Fidelity steady; Westpac Banking eases; CDX firms

By Cristal Cody

Eureka Springs, Ark., Aug. 15 – High-grade bond issuers including Renasant Corp., American Financial Group, Inc., Brixmor Operating Partnership LP and Baltimore Gas and Electric Co. are expected to tap the primary market on Monday, while bonds traded mixed at the start of the session.

About $15 billion to $20 billion of investment-grade supply is forecast for the week.

Fidelity National Information Services, Inc.’s senior notes (Baa3/BBB/BBB) that priced on Thursday traded mostly unchanged.

Westpac Banking Corp.’s $5 billion of fixed- and floating-rate notes (Aa2/AA-/AA-) sold on Thursday softened about 4 basis points to 6 bps from where the paper traded Friday afternoon.

The Markit CDX North American Investment Grade index opened about 1 bp tighter at a spread of 71 bps.

The three-month Libor yield was unchanged at 82 bps over the morning.

On Friday, $10.2 billion of investment-grade issues were traded, according to Trace.

Fidelity mostly flat

Fidelity National Information Services’ 2.25% notes due 2021 were quoted early Monday at 103 bps offered, according to a market source.

The notes traded on Friday at 104 bps bid, 102 bps offered.

Fidelity National Information Services sold $750 million of the notes on Thursday at 110 bps over Treasuries.

The company’s 3% notes due 2026 traded flat at 150 bps offered.

The notes were seen on Friday at 152 bps bid, 150 bps offered in the secondary market.

Fidelity National Information sold $1.25 billion of the 10-year notes in Thursday’s offering at 155 bps over Treasuries.

The financial services technology company is based in Jacksonville, Fla.

Westpac Banking eases

Westpac Banking’s 2% notes due 2021 softened to 86 bps offered in the secondary market, a source said.

The notes traded on Friday at 82 bps bid, 80 bps offered.

Westpac Banking sold $1.5 billion of the notes on Thursday at a spread of 87.5 bps over Treasuries.

The company’s 2.7% notes due 2026 eased to 113 bps offered from where the paper traded on Friday at 111 bps bid, 109 bps offered.

Westpac Banking sold $1 billion of the notes on Thursday at 115 bps over Treasuries.

The Australian bank and financial services provider is based in Sydney.

© 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.