Morning Commentary: Duke Realty, Cowen, American Tower market notes; CVS Health bonds active

By Cristal Cody

Tupelo, Miss., Dec. 5 – High-grade primary action is expected over Tuesday’s session with several issuers preparing bond offerings.

Duke Realty LP is on deck with a 10-year senior note transaction.

Cowen Inc. is marketing 10-year senior notes.

American Tower Corp. is offering senior notes due 2023 and 2028.

Also, Peapack-Gladstone Financial Corp. intends to price fixed-to-floating rate subordinated notes.

Deal action was strong on Monday with new bonds priced from issuers that included Westpac Banking Corp., Charles Schwab Corp., Public Service Electric and Gas Co. and J.M. Smucker Co.

Market sources expect steady deal action through Dec. 15.

About $30 billion of deal volume was forecast by market participants for this week.

In the secondary market, CVS Health Corp.’s bonds (Baa1/BBB+) have been active since the company announced on Sunday it plans to acquire insurer Aetna Inc. for about $69 billion, a source said.

CVS Health’s 2.875% notes due June 1, 2026 softened to 94.99 early Tuesday from where they went out on Monday at 95.07. The bonds traded on Friday at 94.92.

The Scarsdale, N.Y.-based drugstore chain sold $1.75 billion of the notes on May 16, 2016 at 99.139 to yield 2.975% and a spread of Treasuries plus 122 basis points.

On Monday, $15.56 billion of high-grade bonds were traded, according to Trace.

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