Morning Commentary: McDonald’s active, mostly unchanged; Coca-Cola notes firm

By Cristal Cody

Tupelo, Miss., Dec. 7 – High-grade corporate bonds traded mostly flat to tighter at the start of Monday’s session.

McDonald’s Corp.’s senior notes (Baa1/BBB+/BBB+) priced in a $6 billion five-part offering in the previous week remain active in the secondary market but were mostly unchanged over the morning.

Coca-Cola Co.’s 1.875% senior notes due 2020 brought to market in October traded about 3 basis points tighter.

The three-month Libor yield was up 1 bp at 46 bps early Monday.

McDonald’s steady

McDonald’s 3.7% notes due 2026 traded flat at 142 bps offered on Monday, according to a market source.

The company sold $1.75 billion of the notes on Wednesday at a spread of Treasuries plus 155 bps.

McDonald’s 4.875% bonds due 2045 were unchanged at 182 bps offered in secondary trading.

The bonds priced in a $1.75 billion tranche in Wednesday’s sale at 195 bps over Treasuries.

The fast food chain is based in Oak Brook, Ill.

Coca-Cola firms

Coca-Cola’s 1.875% notes due 2020 firmed about 3 bps to 29 bps offered in the secondary market, a source said.

The company sold $1.5 billion of the five-year notes (Aa3/AA/A+) on Oct. 23 at a spread of Treasuries plus 57 bps.

Coca-Cola is an Atlanta-based beverage company.

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