Morning Commentary: NRG, American Tower, Entergy, HSBC, Italy, IBRD, BNG on deck

By Cristal Cody

Tupelo, Miss., Nov. 17 – Investment-grade corporate and sovereign, supranational and agency issuers are marketing bonds over Tuesday’s session following more than $9 billion of issuance at the start of the week.

NRG Energy, Inc. is expected to price $1,465,000,000 of high-grade notes, as well as high-yield issues, on Tuesday following fixed income investor calls on Monday.

The Rule 144A and Regulation S high-grade portion includes five- and seven-year senior secured notes (Baa3/BBB-).

In addition, NRG special purpose vehicle Alexander Funding Trust intends to price $900 million of three-year pre-capitalized trust securities (Baa3/BBB-).

In registered supply, American Tower Corp. is marketing three tranches of fixed-rate senior notes (Baa3/BBB-/BBB+) that include bonds due in 2024, 2028 and 2051.

Entergy Louisiana LLC, which priced $600 million of collateral trust mortgage bonds (A2/A) in two tranches on Nov. 9, is returning to the primary market with a two-part offering of bonds.

The deal includes fixed- and floating-rate collateral trust mortgage bonds.

Financial supply also is expected from HSBC Holdings plc, which is offering new fixed-to-floating rate senior notes (A2/A-/A+) on Tuesday.

In other corporate primary action, Brookfield Finance I (UK) plc intends to price $25-par guaranteed perpetual subordinated notes that are guaranteed by Brookfield Asset Management Inc.

SSA supply

Looking at the SSA space, Italy (Baa3/BBB/BBB-) plans to return to the dollar-denominated market with a registered offering of global notes due Feb. 17, 2026 on Tuesday.

Initial price talk is in the mid-swaps plus 100 basis points area.

The International Bank for Reconstruction and Development, or World Bank, intends to price two tranches of dollar-denominated global sustainable notes (Aaa/AAA/AAA) during the session.

The deal includes three-year notes initially talked to print in the mid-swaps plus 4 bps area and a seven-year note talked to price at the mid-swaps plus 16 bps area.

In addition, BNG Bank NV (Aaa/AAA/AA+) expects to sell a $1 billion Rule 144A and Regulation S offering of five-year senior sustainable notes with initial price talk in the mid-swaps plus 14 bps area.

Investment-grade issuers priced more than $9 billion of bonds on Monday, led by Goldman Sachs Group Inc.’s $2.5 billion two-part offering of three-year senior notes (A3/BBB+/A).

About $25 billion to $30 billion of high-grade supply is forecast for the last full week ahead of the Thanksgiving Day holiday and end of month, sources report.

Market tone was mixed early in the day with equities softer.

The iShares iBoxx Investment Grade Corporate Bond ETF rose 0.26% at $136.55.

The Pimco Investment Grade Corporate Bond index improved 0.1% to $115.85.

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