Morning Commentary: Emera mixed; Under Armour softens; credit spreads open wider

By Cristal Cody

Eureka Springs, Ark., June 13 – Investment-grade bonds were mixed in the secondary market early Monday with traders expected to be focused this week on central bank meetings, including the Federal Reserve’s two-day policy meeting that starts on Tuesday.

Emera US Finance LP’s senior notes priced on Thursday were unchanged to modestly tighter in the secondary market.

Under Armour, Inc.’s new 3.25% senior notes due 2026 edged wider from where they were last seen in secondary trading on Thursday.

The Markit CDX North American Investment Grade index opened the day 1 basis point softer at a spread of 80 bps.

The three-month Libor yield was stable early Monday at 66 bps.

Emera mixed

Emera US Finance’s 3.55% notes due 2026 traded at 185 bps offered, according to a market source early Monday.

The company sold $750 million of the notes on Thursday at Treasuries plus 190 bps.

Emera’s tranche of 4.75% notes due 2046 traded wrapped around issuance at 230 bps offered.

The bonds were sold in a $1.25 billion tranche on Thursday at 230 bps over Treasuries.

Emera US Finance is a subsidiary of Halifax, Nova Scotia-based energy and services company Emera Inc.

Under Armour

Under Armour’s 3.25% notes due 2026 were seen at 159 bps offered in the secondary market, a source said.

The notes were last quoted on Thursday at 154 bps offered.

The company sold $600 million of the bonds on Wednesday at a spread of 160 bps over Treasuries.

Under Armour is a Baltimore-based developer, marketer and distributor of brand performance apparel, footwear and accessories.

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