Fannie Mae to price Benchmark Notes; credit spreads stable; Microsoft, Alphabet stay tight

By Cristal Cody

Eureka Springs, Ark., Aug. 30 – The U.S. investment-grade corporate primary market stayed mostly quiet on Tuesday as the market slows in front of the Labor Day holiday.

Fannie Mae announced plans to price three-year Benchmark Notes.

Coca-Cola Co. detailed its $2 billion two-part sale of notes priced in the previous session.

The company priced $1 billion of 1.55% five-year notes at 99.89 to yield 1.573% and $1 billion of 2.25% 10-year notes at 99.884 to yield 2.263%.

Canadian Imperial Bank of Commerce also detailed its $1.5 billion offering of three-year notes sold in two tranches.

The bank sold $1 billion of 1.6% notes at 99.982 to yield 1.606% and a spread of 70 basis points over Treasuries and $500 million of floating-rate notes at par with a coupon of Libor plus 52 bps.

The Markit CDX North American Investment Grade index closed flat at a spread of 71 bps.

In secondary trading earlier on Tuesday, Microsoft Corp.’s 2.4% notes due 2026 were quoted about 2 bps tighter at 76 bps offered, according to a market source. The company sold $4 billion of the notes on Aug. 1 at 90 bps plus Treasuries.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 traded about 3 bps tighter early Tuesday at 58 bps offered, a source said. Alphabet priced $2 billion of the notes on Aug. 2 at a spread of 68 bps over Treasuries.

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