Morning Commentary: Walmart, PNC Financial offer new high-grade notes; JPMorgan on tap

By Cristal Cody

Tupelo, Miss., April 16 – Investment-grade deal action revved up early Tuesday after a quiet Monday saw thin supply.

Walmart Inc. is offering three tranches of fixed-rate notes.

PNC Financial Services Group, Inc. plans to sell 10-year senior notes.

Also, JPMorgan Chase & Co. intends to price an add-on to its 3.964% fixed-to-floating rate notes due Nov. 15, 2048.

Volume was light on Monday’s U.S. tax day with one reported deal from BMW US Capital, LLC, which priced a $2.7 billion four-part offering of senior notes.

About $10 billion to $15 billion of supply is expected by syndicate sources with issuance likely front-loaded over the holiday week. The bond markets are scheduled to close early on Thursday and remain closed on Friday for the Good Friday holiday.

JPMorgan Chase’s offering is the first of bank and financial supply eyed amid the release of earnings reports.

JPMorgan and Wells Fargo & Co. released first-quarter earnings reports on Friday, while Citigroup Inc. and Goldman Sachs Group, Inc. reported earnings on Monday.

Bank of America Corp. reported its results early Tuesday. Morgan Stanley will release its first-quarter earnings on Wednesday.

In the secondary market, bank and financial paper traded mostly flat to tighter on Monday, a source said.

The session had $17.3 billion of investment-grade issues trade, according to Trace data.

© 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.