Morning Commentary: PepsiCo bonds firm in secondary market; JPMorgan paper improves

By Cristal Cody

Tupelo, Miss., Oct. 13 – PepsiCo Inc.’s senior notes (A1/A) that priced in the previous week traded 3 basis points to 5 bps better in the secondary market early Tuesday after the long holiday weekend.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 firmed 4 bps in early secondary trading.

The Markit CDX North American Investment Grade 25 index was last seen at a spread of 82 bps.

The high-grade index has ranged from a low spread of 60.7 bps to a high spread of 94.8 bps over the past 12 months, according to a Barclays Bank plc report on Tuesday.

PepsiCo tightens

PepsiCo’s 2.15% notes due 2020 firmed 5 bps to 73 bps offered, a market source said.

The company sold $1.1 billion of the five-year notes at Treasuries plus 77 bps on Thursday.

The tranche of 4.45% bonds due 2046 firmed 3 bps to 138 bps offered.

PepsiCo sold $750 million of the notes in Thursday’s offering at 150 bps over Treasuries.

The global food and beverage company is based in Purchase, N.Y.

JPMorgan firms

JPMorgan Chase’s 3.9% notes due 2025 tightened 4 bps to 142 bps offered in the secondary market, a source said.

The notes were seen on Friday unchanged at 150 bps bid.

JPMorgan Chase sold $2.5 billion of the notes (A3/A/A+) on July 14 at a spread of 155 bps over Treasuries.

The financial services company is based in New York City.

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