Morning Commentary: Bank of New York, CIBC, State Street, Target, others to tap market

By Cristal Cody

Tupelo, Miss., Jan. 21 – Investment-grade supply is expected to remain busy but lighter this week with bank and financial issuance continuing over Tuesday’s session, market sources report.

Bank of New York Mellon Corp. plans to price new three-year notes and reopen its $750 million of 2.1% senior notes due Oct. 24, 2024 on Tuesday.

The new issue is initially talked to print in the high Treasuries plus 40 basis points spread area.

The add-on is talked to price in the Treasuries plus 55 bps area.

Canadian Imperial Bank of Commerce is marketing new five-year senior notes on Tuesday.

Initial price talk is in the Treasuries plus low 80 bps area.

State Street Corp. is offering new 10-year senior notes with initial talk in the Treasuries plus 85 bps area.

Also on Tuesday, Target Corp. is marketing 10-year notes with price talk in the 80 bps over Treasuries area.

Waste Connections, Inc. is on deck with an offering of 10-year senior notes. Initial guidance is in the Treasuries plus 105 bps area.

In addition, Nationwide Building Society plans to price new three-year senior notes.

Initial price talk is in the Treasuries plus 65 bps to 70 bps area.

About $20 billion to $25 billion of investment-grade issuance is anticipated over the holiday-shortened week.

The bond markets were closed on Monday for the Martin Luther King Jr. Day holiday.

High-grade deal volume year to date already totals more than $100 billion.

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