Morning Commentary: High-grade market quiet as session starts; Salesforce.com continues calls

By Cristal Cody

Tupelo, Miss., April 4 – Early morning deal activity stayed quiet on Wednesday following about $10 billion of corporate investment-grade bond issuance in the previous session.

Market concerns over a potential trade war with China sent stocks tumbling over the morning.

More than $10 billion of corporate bonds were sold in the first two sessions. Syndicate sources forecast about $20 billion to $25 billion of total volume for the week.

Several issuers are marketing bonds in April, including Ausgrid Finance Pty Ltd., which plans to start a roadshow for a benchmark-sized offering on Friday.

Salesforce.com, Inc. is expected to continue the second round of fixed income investor calls on Wednesday for two tranches of senior notes, according to a market source. BofA Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the arrangers.

Banco Santander, SA also is holding a roadshow that started on Tuesday in the U.S. and Canadian markets for a benchmark-sized dollar-denominated note offering, according to a market source. BofA Merrill Lynch, Citigroup, JPMorgan and Santander Investment Securities Inc. are the arrangers.

On Tuesday, Dollar Tree Inc. held fixed income investor calls, a source said. BofA Merrill Lynch, JPMorgan and Wells Fargo were the arrangers.

Coming up over the week of April 23, Caisse de depot et placement du Quebec (Aaa/AAA) will hold its roadshow for a potential dollar-denominated bond offering, according to a market source.

BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the arrangers.

In other activity in the secondary market, high-grade trading volume rose to $18.36 billion on Tuesday from $12.18 billion on Monday, according to Trace data.

© 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.