Morning Commentary: High-grade supply climbs after AbbVie deal; Enbridge, Hasbro on tap

By Cristal Cody

Tupelo, Miss., Nov. 13 – Volume is ramping up for a second day in the high-grade bond market with several issuers announcing deals early Wednesday following AbbVie Inc.’s $30 billion of notes sold in 10 tranches in the previous session.

Enbridge Inc. plans to price three tranches of fixed-rate senior notes.

Hasbro, Inc. is on deck with four tranches of fixed-rate notes. The company held fixed income investor calls on Thursday.

Choice Hotels International, Inc. intends to price registered fixed-rate senior notes after holding fixed income investor calls on Thursday, a source said.

Meanwhile on Wednesday, Aon Corp. is offering guaranteed fixed-rate senior notes.

Entergy Mississippi, LLC is marketing an add-on to its 3.85% first mortgage bonds due June 1, 2049.

Equinor ASA plans to bring a guaranteed offering of 30-year fixed-rate notes to the primary market.

In addition, L3Harris Technologies, Inc. intends to price new 10-year fixed-rate notes.

Including AbbVie’s deal, investment-grade corporate supply week to date totals more than $33 billion, a market source said.

About $45 billion to $50 billion of high-grade bond issuance is forecast to price this week, according to market sources.

The bond markets were closed on Monday for the Veterans Day holiday.

Westpac Banking Corp.’s $1.25 billion of 2.35% notes due Feb. 19, 2025, priced on Tuesday at a spread of 63 basis points over Treasuries, tightened about 2 bps in the secondary market, a source said.

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