Morning Commentary: National Securities, McKesson, ConEd, BNY, Santander, UDR to price

By Cristal Cody

Tupelo, Miss., Nov. 30 – Several companies intend to tap the high-grade bond market on Monday on the last day of November as the financial markets opened mixed following the Thanksgiving Day holiday, sources said.

National Securities Clearing Corp. (Aaa/AA+) is marketing two tranches of dollar-denominated senior notes that include three-year notes with initial price talk in the Treasuries plus 45 basis points area and five-year notes talked to print in the 65 bps over Treasuries area.

McKesson Corp. is offering registered five-year notes (Baa2/BBB+/BBB+) over the session. Initial price talk is in the Treasuries plus 75 bps to 80 bps area.

Consolidated Edison, Inc. intends to bring a $650 million offering of three-year debentures (Baa2/A-/BBB+) to the primary market on Monday. The bonds are talked to price with a spread in the Treasuries plus 70 bps to 75 bps area.

Meanwhile, financial supply is expected over the session.

Bank of New York Mellon Corp. plans to price $500 million of three-year senior medium-term notes (A1/A/AA-) on Monday. Price talk is in the Treasuries plus 40 bps area.

Also, Banco Santander, SA is marketing dollar-denominated 10-year tier 2 subordinated securities (expected ratings Baa3/BBB) that are initially guided to price at the 230 bps over Treasuries area.

Also on Monday, UDR, Inc. plans to sell $350 million of guaranteed medium-term notes due March 15, 2033 (Baa1/BBB+). The notes are talked to price with a Treasuries plus 140 bps area spread.

About $15 billion to $20 billion of new high-grade issuance is expected this week, according to syndicate sources.

Deal volume was thin last week with just one reported corporate issuer and three SSA issuers in the primary market.

About $25 billion to $35 billion or more of investment-grade corporate bonds are forecast to price in December.

Stocks were soft at the open with the Dow Jones industrial average down 1.04%.

In the high-grade space, tone was more positive.

The iShares iBoxx Investment Grade Corporate Bond ETF improved 0.13% to $138.18.

The Pimco Investment Grade Corporate Bond index edged up 0.01% to $116.95.

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