Morning Commentary: Sanofi, Alexandria Real Estate offer notes; Kommuninvest on tap

By Cristal Cody

Tupelo, Miss., June 12 – Several high-grade issuers are set to bring corporate and agency bonds to the primary market on Tuesday.

French pharmaceutical company Sanofi SA is marketing a dollar-denominated two-part offering of fixed-rate notes.

Alexandria Real Estate Equities, Inc. announced plans to sell two tranches of notes after the company held fixed income investor calls on Monday.

Also on Tuesday, Kommuninvest I Sverige AB plans to price a dollar-denominated offering of long two-year notes that were initially talked to price in the mid-swaps plus 2 basis points area.

Market reaction to president Donald Trump’s meeting with North Korea’s leader Kim Jong Un was quiet over the morning, with more reaction anticipated for the Federal Reserve’s monetary policy announcement on Wednesday, a source said. A rate hike of 25 basis points is widely expected.

In other activity coming up on Wednesday, Bayer AG will start a round of fixed income investor calls for a possible dollar-denominated Rule 144A and Regulation S deal.

Market sources forecast about $15 billion to $20 billion of supply over the week.

On Monday, more than $6 billion of investment-grade bonds were priced.

The secondary market ended the previous session with $15.09 billion of high-grade trading volume, according to Trace.

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