Morning Commentary: High-grade bond issuers market deals; Honeywell widens; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., Oct. 26 – At least two bond issuers are in the investment-grade deal pipeline on Wednesday.

Enterprise Financial Services Corp. plans an offering of fixed-to-floating-rate subordinated notes, while Japan Bank for International Cooperation is marketing a two-part sale of guaranteed bonds.

In the secondary market, Honeywell International Inc.’s 2.5% notes due 2026 that priced on Monday continued to trade softer early Wednesday.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 75 basis points.

High-grade secondary trading volume totaled $19.48 billion on Tuesday, up from $14 billion traded on Monday, according to Trace.

Honeywell eases

Honeywell International’s 2.5% notes due 2026 traded 3 bps weaker at 83 bps offered, according to a market source.

Honeywell sold $1.5 billion of the 10-year notes (A2/A/A) on Monday at a spread of Treasuries plus 78 bps.

The tranche was part of a $4.5 billion offering of notes in four parts.

Honeywell also sold $250 million of three-year floating-rate notes at par to yield Libor plus 28 basis points, $1.25 billion of 1.4% three-year notes at 99.921 to yield 43 bps over Treasuries and $1.5 billion of 1.85% five-year notes at 99.995 to yield Treasuries plus 58 bps.

A planned offering of five-year floating-rate notes was dropped from the sale.

Honeywell is a technology and manufacturing company based in Morristown, N.J.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.