Morning Commentary: Synchrony Financial, Swiss Re Finance offer notes; supply slows

By Cristal Cody

Tupelo, Miss., March 14 – Synchrony Financial marketed a two-tranche offering of fixed-rate senior notes in the high-grade primary market early Thursday.

Also, Swiss Re Finance (Luxembourg) SA announced plans to price 31-year resettable fixed-rate guaranteed subordinated notes.

Otherwise, market activity was fairly quiet at the start of the day after strong issuance in the past three sessions.

High-grade issuers have priced about $24 billion of bonds, just shy of surpassing $25 billion of deal volume projected for the week.

New issues priced this week are trading mostly better in the secondary market, a source said.

KLA-Tencor Corp.’s $1.2 billion two-part offering of senior notes (Baa1/BBB/BBB+) that priced on Wednesday firmed about 7 basis points.

The company sold $800 million of 4.1% notes due March 15, 2029 at a spread of 155 bps over Treasuries and a $400 million tranche of 5% notes due March 15, 2049 with a Treasuries plus 205 bps spread.

United Parcel Service, Inc.’s $1.5 billion two-part offering of senior notes (A1/A+) that priced on Wednesday improved about 1 bp to 2 bps in secondary trading.

The company sold $750 million of 3.4% notes due March 15, 2029 at a spread of 80 bps over Treasuries.

UPS priced $750 million of notes due March 15, 2049 at a Treasuries plus 125 bps spread.

Secondary market volume edged up to $23.83 billion on Wednesday, compared to $23.59 billion on Tuesday and $19.91 billion on Monday, according to Trace data.

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