Morning Commentary: High-grade primary action thins; Shire bonds mixed in secondary trading

By Cristal Cody

Eureka Springs, Ark., Sept. 21 – Investment-grade pricing action is expected to remain mostly quiet on Wednesday as traders and investors focus on the outcome of monetary policy meetings from the Federal Reserve and Bank of Japan.

In the secondary market, Shire Acquisitions Investments Ireland DAC’s $12.1 billion of senior notes (Baa3/BBB-) that priced in four tranches on Monday were mixed.

The Markit CDX North American Investment Grade index opened about 1 basis point tighter at a spread of 81 bps.

The three-month Libor yield was steady at 86 bps early Wednesday.

On Tuesday, $19 billion of Investment-grade issues were traded, up from $14.5 billion on Monday, according to Trace.

Shire mixed

Shire’s 2.4% notes due 2021 tightened to 118 bps bid in secondary trading, a source said.

The five-year notes priced in a $3.3 billion tranche on Monday at Treasuries plus 120 bps.

Shire’s 2.875% notes due 2023 traded about 1 bp softer at 136 bps bid, according to the market source.

Shire sold $2.5 billion of the seven-year notes in Monday’s offering at 135 bps over Treasuries.

The notes are fully and unconditionally guaranteed by parent company Shire plc.

Shire is a global biotechnology company based in Dublin.

© 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.