Morning Commentary: Cisco bonds stronger; Goldman paper tightens; UnitedHealth mostly flat

By Cristal Cody

Tupelo, Miss., Feb. 24 – New bonds priced at the start of the week traded mostly tighter in the high-grade secondary market early Wednesday.

Cisco Systems, Inc.’s senior notes (A1/AA-) brought in a $7 billion six-tranche offering on Monday remain firm.

Goldman Sachs Group Inc.’s senior notes (A3/BBB+/A) that priced on Monday in a $3.6 billion three-part deal traded 1 basis point to 5 bps better.

UnitedHealth Group Inc.’s new 3.1% senior notes due 2026 were flat to 1 bp softer at the start of the day.

Secondary trading volume was strong on Tuesday with $18.34 billion of investment-grade issues traded, up from $16.65 billion on Monday, according to Trace.

Cisco stronger

Cisco Systems’ 2.95% notes due 2026 traded tighter at 114 bps offered in the secondary market, a source said.

The company sold $750 million of the notes on Monday at 120 bps over Treasuries.

San Jose, Calif.-based Cisco produces internet protocol-based networking and other communications and information technology products.

Goldman firms

Goldman Sachs Group’s 3.75% notes due 2026 tightened to 198 bps offered, according to a market source.

Goldman sold $1.75 billion of the notes on Monday at a spread of Treasuries plus 203 bps.

The financial services company is based in New York City.

UnitedHealth mostly flat

UnitedHealth Group’s 3.1% notes due 2026 traded flat to 1 bp weaker at 136 bps offered in secondary trading, a source said.

UnitedHealth priced $1 billion of the notes at Treasuries plus 135 bps on Monday as part of a $2.5 billion three-tranche offering.

The diversified health company is based in Minnetonka, Minn.

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