Morning Commentary: FedEx firms; Newell Rubbermaid bonds strong; credit spreads ease

By Cristal Cody

Eureka Springs, Ark., March 22 – New investment-grade bonds traded mostly better at the start of Tuesday’s session.

FedEx Corp.’s 4.55% bonds due 2046 brought to market on Monday were active in the secondary market, trading 5 basis points tighter early Tuesday.

Newell Rubbermaid Inc.’s $8 billion six-part offering of senior notes (Baa3/BBB-/BBB-) that priced on Friday to fund its acquisition of Jarden Corp. are trading about 30 bps to 50 bps better than issuance in the secondary market.

The Markit CDX North American Investment Grade index opened the day 1 bp softer at a spread of 79 bps.

The three-month Libor yield was unchanged at 62 bps.

On Monday, $16.15 billion of investment-grade issues were traded, according to Trace.

FedEx firms

FedEx’s 4.55% bonds due 2046 traded better at 180 bps offered, a market source said.

FedEx sold $1.25 billion of the bonds (Baa2/BBB) as part of a $2 billion two-tranche offering on Monday at a spread of 185 bps over Treasuries.

The package and freight transportation company is based in Memphis, Tenn.

Newell Rubbermaid strong

Newell Rubbermaid’s 4.2% notes due 2026 were quoted at 202 bps offered in secondary trading early Tuesday, a market source said.

The company sold $2 billion of the notes on Friday at 235 bps over Treasuries.

Newell Rubbermaid’s $1.75 billion tranche of 5.5% bonds due 2046, priced at Treasuries plus 285 bps in Friday’s sale, traded at 246 bps offered in the secondary market.

Newell Rubbermaid is a consumer and commercial products maker based in Atlanta.

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