Morning Commentary: NRG Energy, Kommuninvest, Charles Schwab market notes

By Cristal Cody

Tupelo, Miss., May 20 – NRG Energy Inc. moved forward with plans to tap the primary market after holding fixed income investor calls on Thursday for an investment-grade senior secured note transaction, a source said.

In addition, on Monday Kommuninvest I Sverige AB is marketing a $1 billion Rule 144A and Regulation S offering of two-year notes in the mid-swaps plus 6 basis points area, according to an informed source. The issue is set to price on Tuesday.

Meanwhile, Charles Schwab Corp. offered new 10-year senior notes in the high-grade primary market at the start of Monday’s session.

Supply is expected to be front-loaded this week with the markets scheduled to close at 2 p.m. ET on Friday and remain closed on Monday for the Memorial Day holiday.

About $20 billion to $25 billion of deal volume, with the potential for as little as $15 billion of supply, is forecast by market sources for the week.

More than $29 billion of investment-grade bonds priced in the past week.

The “new issue calendar should remain active” this week as the end of the first quarter reporting season approaches with $22 billion of average historical seasonal volume, according to a BofA Securities Inc. research note released on Monday.

In secondary market activity, Friday’s session ended with $13.66 billion of high-grade bonds traded, according to Trace.

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