Midday Commentary: Spreads largely unchanged; secondary sees light trading volumes

By Aleesia Forni

Columbus, Ohio, Nov. 6 - Spreads in the investment-grade secondary market were "largely unchanged" on Tuesday following a session that saw record-breaking corporate new issuance at $22.1 billion.

Still, the secondary market continues to see "light volumes" following Hurricane Sandy, a trader added.

The trader quoted Boardwalk Pipelines, LP's $300 million of 3.375% senior notes due 2023 at 172 basis points bid, 168 bps offered.

The Houston-based natural gas and liquids pipeline and storage company priced the notes on Monday at a spread of Treasuries plus 170 bps.

Meanwhile, both tranches of Monday's Interpublic Group of Cos. Inc.'s new deal were also wider on the Tuesday.

The $300 million tranche of 2.25% five-year notes was seen trading at 163 bps bid, 158 bps offered.

The company sold the notes at a spread of Treasuries plus 160 bps.

The $500 million of 3.75% 10-year notes was quoted at 217 bps bid, 212 bps offered at midday after pricing at 210 bps over Treasuries.

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