Morning Commentary: Lam Research tightens; HSBC paper firms; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., May 25 – Lam Research Corp.’s senior notes (Baa1/BBB) sold in three parts on Monday traded more than 10 basis points tighter in the secondary market early Wednesday.

HSBC Holdings plc’s 3.9% subordinated notes due 2026 that priced a week ago improved about 2 bps from Tuesday.

The Markit CDX North American Investment Grade index was quoted 3 bps softer as the session kicked off at a spread of 82 bps.

The three-month Libor yield was steady at 66 bps over the morning.

Secondary trading volume rose to $16.83 billion on Tuesday from $13.22 billion of issues traded on Monday, according to Trace.

Lam stronger

Lam Research’s 3.9% notes due 2026 tightened to 198 bps offered in secondary trading, a source said.

The $1 billion tranche of 10-year notes priced on Monday at 210 bps over Treasuries.

Lam Research is a Fremont, Calif.-based semiconductor equipment company.

HSBC improves

HSBC’s 3.9% notes due 2026 firmed about 2 bps from Tuesday to 204 bps offered early Wednesday, according to a market source.

The company sold $2.5 billion of the notes (A1/A/AA-) on May 18 at Treasuries plus 210 bps.

London-based HSBC is a banking and financial services group.

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