Morning Commentary: High-grade deal pipeline active; Shire firms; credit spreads mostly flat

By Cristal Cody

Eureka Springs, Ark., Sept. 26 – Several issuers are in the high-grade deal pipeline, including Triumph Bancorp, Inc. and Kroger Co.

In the secondary market, Shire Acquisitions Investments Ireland DAC’s 3.2% senior notes due 2026 that priced in the previous week firmed about 1 basis point.

The Markit CDX North American Investment Grade index opened flat to modestly softer at a spread of 77 bps.

The three-month Libor yield was down 1 bp to 85 bps on Monday.

On Friday, $13.3 billion of high-grade bonds were traded, according to Trace.

Shire firms

Shire’s 3.2% notes due 2026 traded about 1 bp tighter early Monday at 149 bps offered, according to a market source.

The notes traded on Friday at 152 bps bid, 150 bps offered.

The company sold $3 billion of the notes (Baa3/BBB-) on Sept. 19 at a spread of 150 bps over Treasuries.

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

Shire is a global biotechnology company based in Dublin.

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