Morning Commentary: Home Depot bonds tighten; Intel mostly unchanged; credit spreads firm

By Cristal Cody

Tupelo, Miss., Sept. 9 – High-grade bonds and credit spreads continued to improve early Wednesday ahead of a second day of expected heavy primary issuance.

Home Depot Inc.’s 3.35% senior notes due 2025 that priced on Tuesday traded about 7 basis points better in the secondary market.

Intel Corp.’s 4.9% senior notes due 2045 were unchanged to about 1 bp tighter.

The Markit CDX North American Investment Grade index, which closed on Tuesday 4 bps better at a spread of 79 bps, opened the session 1 bp tighter.

Home Depot tightens

Home Depot’s new 3.35% notes due 2025 were seen about 7 bps tighter than issuance at 110 bps offered in secondary trading, according to a market source.

Home Depot sold $1 billion of the notes (A2/A/A) at a spread of Treasuries plus 117 bps as part of a $1.5 billion two-tranche offering on Tuesday.

The home improvement retailer is based in Atlanta.

Intel mostly unchanged

Intel’s 4.9% bonds due 2045 traded unchanged to 1 bp tighter at 162 bps offered in the secondary market, a source said.

The bonds headed out on Tuesday flat at 169 bps bid.

The company priced $2 billion of the bonds (A1/A+/ A+) on July 22 at Treasuries plus 185 bps.

Intel is a semiconductor chip maker based in Santa Clara, Calif.

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