High-grade primary quiet; deal action forecast; Verizon tightens; Google eases; Shire mixed

By Cristal Cody

Eureka Springs, Ark., Sept. 21 – Investment-grade issuers took a break on Wednesday with no reported issuance and market attention focused on the monetary policy statements from the Bank of Japan and the Federal Reserve.

“We think we should see some tomorrow [Thursday] and possibly Friday, and definitely next week we will see some activity as well,” a syndicate source said.

About $15 billion to $20 billion of high-grade deal volume is expected next week, the source said.

The Federal Open Market Committee maintained the target range for the federal funds rate at 0.25% to 0.5% on Wednesday.

In the secondary market, Verizon Communications Inc.’s senior notes traded about 3 basis points to 7 bps tighter.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 eased about 3 bps in secondary trading.

Shire Acquisitions Investments Ireland DAC’s $12.1 billion of senior notes (Baa3/BBB-/) priced in four tranches on Monday were mixed earlier in the day.

The Markit CDX North American Investment Grade index tightened about 3 bps to close at a spread of 79 bps.

Verizon improves

Verizon’s 2.625% notes due 2026 traded 3 bps tighter at 140 bps bid, a market source said.

Verizon sold $2.25 billion of the notes (Baa1//A-) on July 27 at a spread of Treasuries plus 115 bps.

The company’s 4.125% notes due 2046 tightened about 7 bps to 179 bps bid.

Verizon sold $1.5 billion of the bonds in the July transaction at 190 bps over Treasuries.

The telecommunications company is based in New York City.

Alphabet eases

Alphabet’s 1.998% notes due 2026 traded about 3 bps softer at 65 bps bid in the secondary market, a source said.

Alphabet priced $2 billion of the notes (Aa2/AA/) on Aug. 2 at a spread of 68 bps over Treasuries.

Mountain View, Calif.-based Alphabet is the holding company for Google and other subsidiaries.

Shire mixed

Shire’s 2.4% notes due 2021 traded at 118 bps bid, a source said early Wednesday.

The five-year notes priced in a $3.3 billion tranche on Monday at Treasuries plus 120 bps.

Shire’s 2.875% notes due 2023 traded about 1 bp softer at 136 bps bid, according to the market source.

Shire sold $2.5 billion of the seven-year notes in Monday’s offering at 135 bps over Treasuries.

The notes are fully and unconditionally guaranteed by parent company Shire plc.

Shire is a biotechnology company based in Dublin.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.