Morning Commentary: Archer-Daniels-Midland tightens; Boston Properties flat; credit spreads stable

By Cristal Cody

Eureka Springs, Ark., Aug. 9 – New investment-grade bonds priced on Monday traded flat to tighter in the secondary market early Tuesday.

Archer-Daniels-Midland Co.’s $1 billion offering of 2.5% notes due 2026 firmed 5 basis points.

Boston Properties LP’s 2.75% senior notes due 2026 brought to market on Monday in a $1 billion sale were unchanged from issuance.

The Markit CDX North American Investment Grade index was stable at the start of the session at a spread of 71 bps.

The three-month Libor yield was unchanged at 79 bps.

On Monday, $12.39 billion of high-grade issues were traded, according to Trace.

ADM notes improve

ADM’s 2.5% notes due 2026 traded 5 bps better than issuance at 90 bps offered, according to a market source.

ADM sold $1 billion of the notes (A2/A/A) on Monday at 95 bps over Treasuries.

The Chicago-based company processes agricultural commodities and manufactures food and feed ingredients.

Boston Properties unchanged

Boston Properties’ 2.75% notes due 2026 were flat at the 125 bps area, a market source said.

Boston Properties sold $1 billion of the notes (Baa2/A-/BBB+) on Monday at a spread of 125 bps over Treasuries.

The Boston-based company operates real estate investment trust Boston Properties, Inc.

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