High-grade primary quiets ahead of holiday; strong issuance forecast; Starbucks firms

By Cristal Cody

Tupelo, Miss., Nov. 22 – The high-grade primary market stayed quiet on Wednesday ahead of the Thanksgiving Day holiday, though issuers are lining up bond deals to price in the week ahead, market sources report.

Supply is expected to be strong over the next two weeks with about $30 billion of issuance forecast for the upcoming week.

Just over $7 billion of bonds were reported priced in the first two sessions of this week.

Investment-grade bonds were mixed in the secondary market on Wednesday.

JPMorgan Chase & Co.’s $500 million of floating-rate notes due Jan. 10, 2025 priced in the previous session traded mostly wrapped around issuance.

Starbucks Corp.’s $1 billion of senior notes brought to market in two tranches on Monday tightened about 2 basis points to 3 bps.

The Markit CDX North American Investment Grade 29 index was modestly tighter over the day at a spread of 53 bps.

JPMorgan steady

JPMorgan Chase’s floating-rate notes due Jan. 10, 2025 traded on Tuesday at Libor plus 85 bps bid, 83 bps offered, according to a market source.

JPMorgan Chase sold $500 million of the notes (A3/A-/A+) on Tuesday at Libor plus 85 bps.

The financial services firm is based in New York.

Starbucks firms

Starbucks’ 2.2% notes due Nov. 22, 2020 firmed to 35 bps bid, 33 bps offered in secondary trading, according to a market source.

The company sold $500 million of the three-year notes on Monday at a spread of 37 bps over Treasuries.

Starbucks’ $500 million of 3.75% notes due Dec. 1, 2047 traded on Wednesday at 94 bps bid, 92 bps offered.

The bonds priced with a Treasuries plus 97 bps spread.

Starbucks is a Seattle-based specialty coffee retailer.

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