Morning Commentary: Thermo Fisher tightens; Target unchanged; credit spreads leak wider

By Cristal Cody

Eureka Springs, Ark., April 5 – New investment-grade bonds that priced on Monday traded flat to tighter in the secondary market early Tuesday, while credit spreads opened the session weaker.

Thermo Fisher Scientific Inc.’s $1 billion offering of 3% senior notes due 2023 came in more than 20 basis points in secondary trading.

Target Corp.’s $2 billion sale of senior notes (A2/A/A-) in two tranches on Monday traded wrapped around issuance.

The Markit CDX North American Investment Grade index leaked 2 bps wider to a spread of 78 bps at the start of the day.

On Monday, $14.66 billion of investment-grade issues were traded, according to Trace.

Thermo Fisher tightens

Thermo Fisher Scientific’s 3% notes due 2023 (Baa3/BBB/BBB) traded at 128 bps offered in the secondary market, a source said.

Thermo Fisher Scientific sold $1 billion of the seven-year senior notes on Monday at Treasuries plus 155 bps.

Thermo Fisher is a Waltham, Mass.-based science technology company.

Target unchanged

Target’s 2.5% notes due 2026 were unchanged from issuance at 72 bps offered in secondary trading, a source said.

Target sold $1 billion of the notes on Monday at a spread of Treasuries plus 72 bps.

The retailer’s $1 billion offering of 3.625% bonds due 2046, which priced at Treasuries plus 105 bps in Monday’s sale, traded flat at 105 bps offered.

The discount merchandise retailer is based in Minneapolis.

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