Morning Commentary: Coach trades tighter; Kinder Morgan modestly better; credit spreads tight

By Cristal Cody

Tupelo, Miss., Feb. 25 – High-grade corporate bonds priced over the week by Coach Inc. and Kinder Morgan Inc. traded better in the secondary market early Wednesday, while credit spreads remain tight, sources said.

Coach’s 4.25% senior notes due 2025 have stayed strong in secondary trading since the issue came on Monday.

Kinder Morgan’s 5.05% senior notes due 2046 that priced at the start of the week traded 2 basis points tighter.

High-grade credit spreads were flat after tightening on Tuesday.

The Markit CDX North American Investment Grade index firmed 2 bps to a spread of 62 bps in the previous session.

“The CDX investment grade index has tightened roughly 60 bps since its mid-January wides, with 20 bps of that occurring over the last week,” RBC Capital Markets LLC analysts said in a note.

Coach tightens

Coach’s 4.25% senior notes due 2025 traded better at 203 bps offered, a market source said.

The notes (Baa2/BBB-/BBB) were quoted on Tuesday at 212 bps offered.

Coach sold $600 million of the notes on Monday at Treasuries plus 225 bps.

The luxury leather goods company is based in New York.

Kinder Morgan improves

Kinder Morgan’s 5.05% notes due 2046 firmed 2 bps to 238 bps offered, according to a market source.

The company sold $800 million of the bonds (Baa3/BBB-/BBB-) on Monday at 240 bps over Treasuries.

The pipeline operator is based in Houston.

© 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.