Morning Commentary: Kilroy offers notes; DowDuPont, Takeda on tap; Handelsbanken firms

By Cristal Cody

Tupelo, Miss., Nov. 14 – Some pricing action is expected over Wednesday’s session with several high-grade issuers marketing notes.

Kilroy Realty, LP announced plans to price senior notes.

DowDuPont Inc. is expected to price about $12 billion of notes in eight tranches following fixed income investor calls on Tuesday.

Market sources also are looking for a potential dollar-denominated offering from Takeda Pharmaceutical Co., Ltd., which is holding a European roadshow that ends on Wednesday for an estimated $14 billion equivalent of mostly euro-denominated debt.

In other primary action, the Federal Home Loan Bank System announced plans to price a new 10-year global note on Thursday.

On Tuesday, more than $4 billion of high-grade bonds were priced from issuers including Svenska Handelsbanken AB, Marriott International Inc., Boston Properties LP, U.S. Bank NA and U.S. Bancorp.

About $25 billion to $30 billion of supply on average is forecast for the shortened market week, according to syndicate sources. The bond markets were closed on Monday in observance of the Veterans Day holiday.

Deal volume is expected to be heavy this week with limited supply in the week ahead due to the Thanksgiving Day holiday, sources said.

Meanwhile, secondary trading was heavy on Tuesday with $21 billion of high-grade bonds traded, according to Trace. In the same period a week ago, $18.96 billion of bonds were traded.

Svenska Handelsbanken’s $1.4 billion of 3.9% notes due Nov. 20, 2023 (Aa2/AA-/AA) tightened about 2 basis points in the secondary market from where the notes priced on Tuesday at a spread of 95 bps over Treasuries, according to a market source.

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