Midday Commentary: Secondary market volume climbs; Burlington Northern flat; J.B. Hunt firms

By Cristal Cody

Tupelo, Miss., March 5 - Investment-grade credit spreads remain tight after back-to-back busy primary sessions, according to market sources early Wednesday.

"Secondary market trading volume was just shy of $27 billion yesterday - the highest volume day in over a year - and there was the most corporate bond new issue activity in over a month," RBC Capital Markets, LLC analysts said in a note.

The Markit CDX North American Investment Grade series 21 index closed the previous day 2 basis points tighter to a spread of 63 bps.

Burlington Northern Santa Fe LLC's 4.9% senior debentures due 2044 brought on Tuesday were unchanged in early trading, according to a market source.

J.B. Hunt Transport Services, Inc.'s new 10-year notes tightened 5 bps in the secondary market, a source said.

Burlington Northern flat

Burlington Northern's 4.9% debentures due 2044 (A3/BBB+/) traded flat at 125 bps bid, a source said.

The issue priced in a $1 billion offering at 128 bps over Treasuries on Tuesday.

The holding company for railroad transportation subsidiaries is based in Fort Worth, Texas.

J.B. Hunt tightens

J.B. Hunt's 3.85% senior notes due 2024 firmed 5 bps to 117 bps bid early Wednesday, a market source said.

The company sold $250 million of the 10-year notes (Baa1/BBB+/) at a spread of Treasuries plus 125 bps on Monday.

J.B. Hunt is a Lowell, Ark.-based full truckload transportation and delivery service company.

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