Morning Commentary: Primary action quiets; General Motors Financial mixed; CBS, Enbridge firm

By Cristal Cody

Tupelo, Miss., June 30 – The investment-grade primary market is expected to remain quiet over Friday’s session with desks thinly staffed ahead of the early market close on Monday and Fourth of July holiday on Tuesday.

New issues priced over the week remained mostly better in the secondary market at the start of the day.

General Motors Financial Co. Inc.’s $2.25 billion three-part offering of senior notes on Tuesday was mixed early Friday but traded about 6 basis points to 12 bps tighter than issuance.

CBS Corp.’s $900 million of senior notes (Baa2/BBB/BBB) priced in two tranches on Monday improved over the morning.

Enbridge Inc.’s $1.4 billion of senior notes sold in two tranches on Tuesday tightened about 2 bps in secondary trading on Friday.

Overall secondary market volume totaled $17.57 billion on Thursday, compared to $18.83 billion on Wednesday, $18.79 billion on Tuesday and $14.99 billion on Monday, according to Trace.

GM Financial mixed

General Motors Financial’s 3.15% notes due June 30, 2022 softened about 1 bp from Thursday to 125 bps bid, 122 bps offered, according to a market source.

The company (Baa3/BBB/BBB) sold $1.25 billion of the five-year notes on Tuesday at a spread of 137 bps over Treasuries.

General Motors Financial’s reopened 4.35% notes due Jan. 17, 2027 traded unchanged early Friday at 189 bps bid, 186 bps offered.

The company sold $500 million of the 10-year notes in a reopening on Tuesday at a spread of Treasuries plus 195 bps.

General Motors Financial originally sold $750 million of the notes on Jan. 12 at a spread of 200 bps over Treasuries.

The finance subsidiary of General Motors Co. is based in Fort Worth.

CBS notes firm

CBS’ 2.5% notes due Feb. 15, 2023 tightened to 83.5 bps bid, 82.5 bps offered early Friday, according to a market source.

The notes were seen on Thursday at 84 bps bid, 81 bps offered.

The company priced $400 million of the notes on Monday at a spread of Treasuries plus 85 bps.

CBS’ 3.375% notes due Feb. 15, 2028 firmed to 131 bps bid, 128.5 bps offered in early secondary trading. The notes traded in the previous session at 133 bps bid, 130 bps offered.

CBS sold $500 million of the notes on Monday at a Treasuries plus 135 bps spread.

The broadcasting company is based in New York.

Enbridge tightens

Enbridge’s 3.7% notes due July 15, 2027 tightened about 2 bps on the bid side to 145 bps bid, 141 bps offered in secondary trading over the morning, a market source said.

The notes traded on Thursday at 147 bps bid, 145 bps offered.

Enbridge (Baa2/BBB+/BBB+) sold $700 million of the 10-year notes on Tuesday at a Treasuries plus 150 bps spread.

Enbridge is a Calgary, Alta.-based oil and gas distribution and transportation company.

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