Post-election primary market quiet; BNG plans deal; Duke Energy firms; AT&T, Time Warner flat

By Cristal Cody

Eureka Springs, Ark., Nov. 9 – Investment-grade market action slowed on Wednesday as investors and traders took in a Donald Trump presidency with bonds ending the day flat to better.

Bank Nederlandse Gemeenten NV is marketing a potential dollar offering of sustainability bonds.

Market action was mixed over the day.

Stocks gained. The Dow Jones industrial average and the S&P 500 index both closed up more than 1%.

Treasuries remained down. The 10-year note yield was up to 2.04% on Wednesday from 1.84% in the previous session.

The Markit CDX North American Investment Grade index tightened 2 basis points to close at a spread of 74 bps.

Duke Energy Corp.’s 2.65% senior notes due 2026 traded about 6 bps better during the session.

Bonds from AT&T Inc. and Time Warner Inc. were mostly flat on the day.

Deutsche Bank AG’s 4.25% notes due 2021 traded about 2 bps better earlier in the day.

“The markets have taken the events in stride,” Michelle Meyer, head of U.S. economics at BofA Merrill Lynch, said on a post-election media conference call on Wednesday. “The outcome of the election possibly makes a Fed hike in December a little more challenging.”

BNG preps calls

Bank Nederlandse Gemeenten (Aaa/AAA/AA+) mandated three bookrunners to arrange fixed-income investor calls for a potential dollar offering of sustainability bonds, according to a market source.

BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and TD Securities (USA) LLC will arrange the calls for the Rule 144A/Regulation S transaction.

BNG has priced a total of €1.15 billion of sustainability bonds in two euro-denominated deals over the past two years.

The banking services company is based in the Hague, the Netherlands.

Duke Energy firms

Duke Energy’s 2.65% notes due 2026 firmed about 6 bps on Wednesday to 111 bps bid in the secondary market, a source said.

The company sold $1.5 billion of the 10-year notes (Baa1/BBB+/BBB+) on Aug. 9 at a spread of 115 bps plus Treasuries.

The diversified energy company is based in Charlotte, N.C.

AT&T steady

AT&T’s 4.125% notes due 2026 headed out unchanged at 161 bps bid, according to a market source.

The notes were quoted trading at 146 bps bid on Oct. 21 before the company announced a deal to acquire Time Warner.

AT&T priced a $900 million add-on to the bonds on May 3 at Treasuries plus 150 bps. The notes originally were sold on Jan. 29 in a $1.5 billion offering at 195 bps over Treasuries.

The telecommunications company is based in Dallas.

Time Warner unchanged

Time Warner’s 2.95% notes due 2026 were flat on the day at 136 bps bid, a market source said.

The 10-year notes traded in the 112 bps bid area before the merger deal with AT&T was announced.

Time Warner sold $800 million of the notes on May 5 at a spread of 135 bps over Treasuries.

The media and entertainment company is based in New York.

Deutsche Bank firms

Deutsche Bank’s 4.25% notes due 2021 traded about 2 bps better early Wednesday at 289 bps offered, according to a market source.

The bank priced a $1.5 billion add-on to the notes on Oct. 11 at a spread of Treasuries plus 290 bps. The notes were originally sold in a $3 billion tranche on Oct. 7 at Treasuries plus 300 bps.

Deutsche Bank is a banking and financial services company based in Frankfurt.

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