Morning Commentary: Shell, CSX, Florida Power, Santander, MPLX on deck; Volkswagen eyed

By Cristal Cody

Tupelo, Miss., Nov. 7 – Investment-grade bond supply is expected to pick up significantly on Wednesday following the U.S. mid-term elections and light deal volume so far in the week.

Shell International Finance BV is marketing three tranches of guaranteed notes.

CSX Corp. is offering two tranches of notes.

Florida Power & Light Co. plans to sell 50-year floating-rate notes.

Santander UK Group Holdings plc is on deck with an offering of fixed-to-floating rate notes due 2024.

Also, MPLX LP intends to bring two tranches of senior notes to the primary market.

In other action on Wednesday, Volkswagen Group of America Finance LLC (A3/BBB+) will continue to hold fixed income investor calls for a Rule 144A and Regulation S dollar-denominated multiple-tranche bond deal, according to a market source.

Just over $2 billion of investment-grade bonds priced on Tuesday following light volume of $1.5 billion on Monday.

About $15 billion to as much as $30 billion of issuance was forecast by market sources for the week.

In the secondary market, trading volume hit $18.96 billion on Tuesday, up from $16.21 billion on Monday, according to Trace.

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