Morning Commentary: NextEra remarkets; Old Republic firms; Amgen eases; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., Aug. 25 – NextEra Energy Capital Holdings, Inc. intends to remarket $500 million of its series G debentures due Sept. 1, 2018 on Thursday, while investment-grade bonds were mostly mixed in early secondary trading.

Old Republic International Corp.’s 3.875% senior notes due 2026 that priced on Tuesday traded more than 25 basis points better than issuance in the secondary market.

Amgen Inc.’s 2.6% senior notes due 2026 eased 3 bps to trade wrapped around issuance.

The three-month Libor yield was steady at 83 bps.

The Markit CDX North American Investment Grade index opened unchanged at a spread of 72 bps.

Investment-grade secondary trading volume rose to $16.06 billion on Wednesday, compared to $14.6 billion on Tuesday and $10.32 billion on Monday, according to Trace.

Old Republic tightens

Old Republic International’s 3.875% senior notes due 2026 were quoted early Thursday at 208 bps offered in the secondary market, according to a source.

Old Republic International sold $550 million of the notes (Baa3/BBB+) on Tuesday at Treasuries plus 235 bps.

Chicago-based Old Republic is an insurance holding company.

Amgen softens

Amgen’s 2.6% senior notes due 2026 eased 3 bps to 110 bps offered in the secondary market, a source said early Thursday.

The company sold $1.25 billion of the notes (Baa1/A) on Aug. 10 at 110 bps over Treasuries.

Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.

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