Morning Commentary: High-grade primary market heats up; AbbVie notes tighten in secondary market

By Cristal Cody

Eureka Springs, Ark., May 11 – Primary action is set to ramp up for a third straight session in the high-grade market with companies including Consolidated Edison, Inc., Starbucks Corp. and Kansas City Southern in Wednesday’s deal pipeline.

In the secondary market, AbbVie Inc.’s senior notes that priced on Monday traded stronger.

The three-month Libor yield was unchanged over the morning at 63 basis points.

Secondary trading volume climbed to $17.39 billion on Tuesday from $14.17 billion on Monday, according to Trace.

AbbVie tightens

AbbVie’s 2.3% notes due 2021 traded at 109 bps offered, according to a market source early Wednesday.

The company sold $1.8 billion of the notes at a spread of 115 bps over Treasuries on Monday.

AbbVie’s $2 billion tranche of 3.2% notes due 2026 were better at 141 bps offered in secondary trading. The notes priced on Monday at Treasuries plus 150 bps.

The biopharmaceutical company is based in Abbott Park, Ill.

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