High-grade supply resumes after Fed rate cut; McDonald’s, Entergy price

By Cristal Cody

Tupelo, Miss., March 3 – Investment-grade issuers sold more than $6 billion of bonds on Tuesday in the busiest session in more than a week following the Federal Reserve’s rate cut of 50 basis points at the start of the session.

McDonald’s Corp. priced $2 billion of senior medium-term notes in three tranches.

Sherwin-Williams Co. sold $1 billion of senior notes in two parts.

American Electric Power Co., Inc. came with $800 million of senior notes in two tranches.

Texas Instruments Inc. brought $750 million of five-year notes.

Canadian Pacific Railway Co. sold $500 million of 10-year notes.

Also, Entergy Louisiana LLC priced $350 million of 31-year collateral trust mortgage bonds.

The deals are the first corporate issues to price this week following no issuance on Monday and only one offering in the market last week on volatility from the coronavirus.

Up to about $15 billion of bond supply is forecast for the week.

Early in the session, the Federal Reserve announced in a Federal Open Market Committee release that it lowered the target range for the federal funds rate to 1% to 1.25%.

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