Morning Commentary: National Rural Utilities, Kimberly-Clark, Japan Bank market notes

By Cristal Cody

Tupelo, Miss., Oct. 24 – The investment-grade primary market may see a busier session on Wednesday with a handful of issuers on deck at the start of the day.

National Rural Utilities Cooperative Finance Corp. is offering two tranches of collateral trust bonds to repay $875 million of outstanding bonds that mature Nov. 1.

MUFG, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. are the bookrunners.

Kimberly-Clark Corp. plans to price 10-year notes via bookrunners Barclays, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC. The proceeds will be used for general corporate purposes, including to repay a portion of commercial paper debt.

Also, the Japan Bank for International Cooperation is expected to price on Wednesday two tranches of senior bonds (A1/A+) guaranteed by Japan and registered with the Securities and Exchange Commission.

The deal includes notes due Oct. 31, 2023 that were initially talked to price in the mid-swaps plus 3 basis points area and notes due Oct. 31, 2028 with initial price talk in the mid-swaps plus 43 bps area.

Goldman Sachs International, BofA Merrill Lynch, Daiwa Capital Markets Europe Ltd. and Nomura International plc are the bookrunners.

Nearly $6 billion of corporate and SSA bonds have priced week to date, boosted by the European Investment Bank’s $3 billion of five-year global notes that priced on Tuesday. Just under $3 billion of corporate bonds were priced in the first two sessions of the week.

Syndicate sources forecasted about $15 billion to $20 billion of deal volume this week.

In the secondary market, trading volume week to date includes $17.34 billion of investment-grade bonds traded on Tuesday and $16.4 billion of issues traded on Monday, according to Trace data.

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