Midday Commentary: Market tone weakens; recent deals trading mixed in secondary market

By Aleesia Forni

Virginia Beach, Va., May 15 - The investment-grade secondary market's tone was slightly weaker early during Wednesday's session, according to one market source.

The Markit CDX Series 20 North American Investment Grade index was unchanged at a spread of 73 basis points.

In trading, Tuesday's new issues from Toyota Motor Credit Corp., Hershey Co. and Kimco Realty Corp. were mixed during the session.

Toyota's three-year fixed-rate notes were quoted 1 bp wider, while Hershey's 10-year bonds traded 5 bps better.

The new 10-year notes from Kimco Realty traded flat on the day.

Toyota slightly weaker

Toyota Motor Credit's $750 million of 0.8% three-year notes traded 1 bp weaker on Wednesday at 42 bps bid, 37 bps offered, according to a trader.

The notes were sold at a spread of Treasuries plus 42 bps.

Tuesday's two-part sale also included a $750 million tranche of three-year floating-rate notes priced at par to yield Libor plus 29 bps.

The funding arm of Toyota is based in Torrance, Calif.

Kimco flat

Kimco Realty's $350 million of 3.125% 10-year notes, which priced during Tuesday's session at a spread of 125 bps over Treasuries, traded unchanged on the day.

The notes were quoted at 125 bps bid, 122 bps offered early during the session.

The real estate investment trust for neighborhood and community shopping centers is based in New Hyde Park, N.Y.

Hershey tightens

In other secondary action, Hershey's recent $250 million 2.625% 10-year notes traded 5 bps better at 67 bps bid, 66 bps offered on Wednesday.

The notes were sold on Tuesday to yield Treasuries plus 72 bps.

The maker of chocolate and confectionery products is based in Hershey, Pa.

© 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.