Morning Commentary: Viacom, DTE, Fortis to price; HSBC tightens; Shire softens; CDX eases

By Cristal Cody

Eureka Springs, Ark., Sept. 29 – Investment-grade primary action is expected to include offerings from Viacom Inc., DTE Energy Co. and Fortis Inc. on Thursday.

High-grade bonds were mixed in the secondary market.

HSBC Holdings plc’s 2.65% notes due 2022 sold on Wednesday tightened about 4 basis points.

Shire Acquisitions Investments Ireland DAC’s 2.4% notes due 2021 brought to market earlier in September traded softer than issuance.

The Markit CDX North American Investment Grade index opened about 1 bp wider at a spread of 76 bps.

The three-month Libor yield was unchanged early Thursday at 85 bps.

On Wednesday, $18.5 billion of investment-grade issues were traded, compared to $18.1 billion on Tuesday and $12.79 billion on Monday, according to Trace.

HSBC improves

HSBC Holdings’ 2.65% notes due 2022 firmed to 151 bps bid in the secondary market, a source said.

The company sold $2.5 billion of the notes (A1/A/AA-) on Wednesday at a spread of Treasuries plus 155 bps.

The banking and financial services group is based in London.

Shire eases

Shire’s 2.4% notes due 2021 traded about 1 bp softer at 123 bps offered in the secondary market, a source said.

The company sold the five-year notes in a $3.3 billion tranche on Sept. 19 at Treasuries plus 120 bps.

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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