Pfizer, Morgan Stanley, Duke Energy Carolinas, American Water price; credit spreads ease

By Cristal Cody

Eureka Springs, Ark., Nov. 14 – More than $10 billion of investment-grade bonds priced on Monday as issuance continues to ramp up following the U.S. presidential election.

Pfizer Inc. priced $6 billion of bonds in five tranches during the session: $1 billion of 1.7% three-year notes with a spread of 45 basis points over Treasuries, $1 billion of 2.2% five-year notes at a 55 bps plus Treasuries spread, $1.75 billion of 3% 10-year notes with a spread of 85 bps over Treasuries, $1 billion of 4% 20-year notes at a 100 bps spread plus Treasuries and $1.25 billion of 4.125% 30-year notes with a spread of 110 bps over Treasuries.

Morgan Stanley priced $3.25 billion of five-year senior notes.

Duke Energy Carolinas LLC brought $600 million of 10-year first and refunding mortgage bonds on Monday.

American Water Capital Corp. sold $550 million of senior notes in two tranches.

Also, details emerged on new issuance from JPMorgan Chase & Co. and Goldman Sachs Group Inc.

High-grade credit spreads softened and Treasuries continued the sell-off begun after Donald Trump won the presidential election.

The Markit CDX North American Investment Grade index eased 2 basis points to a spread of 77 bps.

The 10-year Treasury note yield rose to 2.26% on Monday from 2.13% on Thursday.

In the secondary market, Consolidated Edison Co. of New York, Inc.’s debentures (A2/A-/A-) were quoted about 1 bp to 3 bps better than issuance.

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