Morning Commentary: Scotiabank, Constellation Brands, Export Development Canada on tap

By Cristal Cody

Tupelo, Miss., July 24 – High-grade issuers marketed a handful of new bond deals over the morning on Wednesday with bank and financial supply remaining in the forefront.

Bank of Nova Scotia plans to price dollar-denominated fixed-rate senior bail-inable notes.

Also early Wednesday, Constellation Brands, Inc. offered fixed-rate senior notes.

Meanwhile, Export Development Canada plans to price a Canadian dollar-denominated registered offering of fixed-rate green bonds.

Investment-grade volume week to date already totals more than $15 billion following UnitedHealth Group Inc.’s $5.5 billion five-part offering of senior notes, Imperial Brands Finance plc’s $2.75 billion three-tranche sale of senior notes, Bank of America Corp.’s $1.5 billion of two-year floating-rate senior notes, BB&T Corp.’s $1 billion of five-year senior medium-term notes and Bank of Montreal’s $500 million of fixed-rate resetting non-cumulative perpetual subordinated additional tier 1 capital notes on Tuesday.

About $15 billion to $20 billion of deal volume was forecast by market sources for the week.

In the secondary market, new issues are trading mostly tighter than issuance, a source said.

Synchrony Financial’s $750 million of 2.85% senior notes due July 25, 2022 that priced Monday have firmed nearly 10 basis points. The notes were quoted trading in the 101 bps area.

Synchrony Financial priced the notes at a Treasuries plus 110 bps spread.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.