Morning Commentary: Kommuninvest tightens spread on three-year issue; Comcast recovers

By Cristal Cody

Tupelo, Miss., Nov. 21 – Kommuninvest I Sverige AB tightened the spread on a dollar-denominated offering of notes launched in a Rule 144A and Regulation S deal on Wednesday.

Kommuninvest (Aaa/AAA) plans to sell $1.25 billion of notes due March 23, 2022 at mid-swaps plus 6 basis points.

The notes were initially talked on Tuesday to price in the mid-swaps plus 7 bps area.

Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Nomura Securities International, Inc. are the bookrunners.

Deal action is expected to be light over Wednesday’s session ahead of the Thanksgiving Day holiday on Thursday and early market close on Friday.

On Tuesday, no corporate issuers tapped the primary market. In SSA supply, HSBC Bank Canada brought an inaugural $750 million offering of mortgage covered bonds.

High-grade corporate issuers priced $6 billion of bonds on Monday in deals that were led by Takeda Pharmaceutical Co., Ltd.’s $5.5 billion four-part sale of senior notes.

About $5 billion to $10 billion of investment-grade volume was expected by syndicate sources for the week.

While primary action waned on Tuesday, the secondary market picked up speed with $20.1 billion of issues traded, up from $17.97 billion on Monday, according to Trace.

Comcast Corp.’s senior notes (A3/A-/A-) that priced as part of a $27 billion 12-tranche offering in October recovered some lost ground early Wednesday after softening in the previous session, according to a market source.

The bonds have been heavily traded over the past two weeks after the American Cable Association Inc. announced that it asked the Justice Department’s antitrust division to investigate Comcast’s business practices.

Comcast’s 4.7% notes due Oct. 15, 2048 improved to 98.24 over the morning from where the notes went out on Tuesday down nearly 1 point at 97.19.

The notes traded about 6 bps wider at 157 bps bid on Tuesday, a source said.

Comcast sold $4 billion of the 30-year bonds on Oct. 12 at 99.918 to yield 4.705%, or a spread of 150 bps over Treasuries.

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