Morning Commentary: High-grade supply on deck; Westpac, Kommuninvest, EDC, Dexia offer notes

By Cristal Cody

Tupelo, Miss., Jan. 17 – Investment-grade corporate and SSA issuance is expected in the primary market on Wednesday, according to market sources.

Toll Brothers Finance Corp. is marketing a split-rated offering of 10-year guaranteed senior notes.

Westpac Banking Corp. intends to price fixed-rate and floating-rate notes in a two-tranche deal.

Bank and financial supply remains at the forefront for the week.

Wells Fargo Bank NA, JPMorgan Chase & Co. and ANZ New Zealand International Ltd. priced new paper on Tuesday.

During Wednesday’s session, Bank of America Corp. and Goldman Sachs Group, Inc. release earnings reports, while Morgan Stanley is on deck with its profit report on Thursday.

In SSA supply expected on Wednesday, Kommuninvest I Sverige AB is offering $1 billion of three-year notes in a Rule 144A and Regulation S offering. The notes were initially talked to price with a spread in the mid-swaps plus 6 basis points area.

Also, Export Development Canada plans to price a U.S. dollar-denominated offering of five-year global notes on Wednesday. The notes were initially talked to price in the mid-swaps plus 11 bps area.

In addition, Dexia Credit Local SA is in the deal pipeline with a benchmark-sized Rule 144A and Regulation S offering of three-year dollar-denominated senior notes.

Elsewhere on Wednesday, Hercules Capital, Inc. is scheduled to conclude a second day of fixed income investor calls. The company is expected to tap the primary market with a reopening of its 4.625% notes due Oct. 23, 2022 (BBB-) via Citigroup Global Markets Inc., Jefferies & Co. and Wells Fargo Securities, LLC.

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