Morning Commentary: New issue calendar builds; Caterpillar Financial, Barclays tighten; CDX eases

By Cristal Cody

Eureka Springs, Ark., Aug. 8 – New investment-grade corporate bond supply on tap for Monday includes a notes offering from Archer-Daniels-Midland Co. and fixed- and floating-rate tranches from Berkshire Hathaway Inc. and Berkshire-Hathaway Finance Corp.

In the secondary market, Caterpillar Financial Services Corp.’s 1.7% medium-term notes due 2021 traded about 7 basis points tighter than where the notes priced on Thursday.

Barclays plc’s new 3.2% notes due 2021 firmed 5 bps from Friday.

The Markit CDX North American Investment Grade index opened the session about 1 bp softer at a spread of 71 bps.

The three-month Libor yield was up 1 bp at 79 bps on Monday.

On Friday, $12.6 billion of investment-grade issues were traded, according to Trace.

Caterpillar firms

Caterpillar Financial Services’ 1.7% notes due 2021 tightened to 65 bps offered in secondary trading, a source said.

The company priced $950 million of the five-year notes on Thursday at a spread of 72 bps over Treasuries.

Nashville, Tenn.-based Caterpillar Financial Services is a financing arm of Caterpillar Inc.

Barclays better

Barclays’ 3.2% notes due 2021 improved 5 bps from Friday to 202 bps offered in the secondary market, a source said.

Barclays sold $1.35 billion of the notes on Wednesday at a spread of 215 bps over Treasuries.

The financial services company is based in London.

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