Morning Commentary: AT&T plans five-part bond deal; Kinder Morgan offers two tranches

By Cristal Cody

Tupelo, Miss., July 27 – Two heavyweight high-grade issuers are offering bonds in the primary market on Monday in a strong start to the week.

AT&T Inc. is marketing five tranches of dollar-denominated global notes (Baa2/BBB/A-). The deal includes notes due in 2028, 2032, 2043, 2052 and 2061.

On the same date in 2017, the company sold $22.5 billion of global senior notes in seven tranches.

AT&T was last in the primary market on June 16 with $1.05 billion of 30-year Formosa bonds and on May 21 when it sold $12.5 billion of notes in five tranches.

Meanwhile, Kinder Morgan, Inc. is offering two tranches of registered senior notes (Baa3/BBB/BBB) on Monday. Kinder Morgan last tapped the high-grade bond market in 2018 when it sold $2 billion of senior notes in two tranches on Feb. 22, 2018.

Investment-grade bond supply is thinning from the record levels seen since March with only about $10 billion to $15 billion of issuance expected this week, syndicate sources report.

An uptick in volume is expected this week after less than $7 billion of supply was seen last week, according to market sources.

Market tone in the high-grade space was mixed early Monday.

The iShares iBoxx Investment Grade Corporate Bond ETF improved 2 cents to 138.14.

The Pimco Investment Grade Corporate Bond index edged down 1 cent to 116.84 over the morning.

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