Midday Commentary: Mattel, BNY Mellon, QVC among issuers; Freeport, Coke bonds tighten

By Andrea Heisinger

New York, March 4 - A rash of new issues was announced Monday morning, although none seemed intent on matching the size of sales from the previous week.

Toy maker Mattel, Inc., Bank of New York Mellon Corp., M&T Bank Corp., Southern California Edison Co. and Verizon Communications Inc. were among those announcing offerings.

There was a split-rated offering from QVC, Inc. and a sovereign offering from Germany's FMS Wertmanagement.

American Tower Corp. announced its intention to price bonds, although it was unclear if that would take place on Monday.

The secondary market was "holding its own" as it continued to absorb the more than $25 billion of bonds sold the previous week, a trader said.

Among the recent issues seen trading were two of the bonds from the $6.5 billion sale in four parts priced Thursday by Freeport-McMoRan Copper & Gold Inc.

The Phoenix-based mining company's 2.375% notes due 2018 were seen at a bid of 148 basis points and an offer of 143 bps. This was much tighter than the 162.5 bps over Treasuries price and similar to the 145 bps trading level from Friday.

A 3.1% note due 2020 was about 6 bps tighter at 181 bps bid, 177 bps offered. The notes were sold at 187.5 bps over Treasuries.

Two fixed-rate bonds from Coca-Cola Co. were quoted 2 bps improved from pricing levels.

A trader said at midday that the 1.15% five-year note was at 43 bps bid, 40 bps offered. Pricing was at 45 bps over Treasuries. Meanwhile, the 2.5% 10-year notes were at 65 bps bid, 66 bps offered - in from the price of 67 bps.

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