Morning Commentary: Bunge, Black Hills bonds tighten; Libor yield continues to rise; CDX steady

By Cristal Cody

Eureka Springs, Ark., Aug. 11 – New investment-grade corporate bonds traded mostly tighter in the secondary market as traders and investors prepared for new supply on Thursday.

Bunge Ltd. Finance Corp.’s 3.25% senior notes due 2026 that priced on Wednesday traded 5 basis points better in the secondary market.

Black Hills Corp.’s 3.15% senior notes due 2027 also tightened 5 bps in secondary trading.

The three-month Libor yield edged up 1 bp to 82 bps on Thursday.

The Markit CDX North American Investment Grade index was mostly unchanged at a spread of 72 bps.

Secondary high-grade bond trading volume totaled $15.6 billion on Wednesday, compared to $16.17 billion on Tuesday and $12.39 billion on Monday, according to Trace.

Bunge tightens

Bunge Ltd. Finance’s 3.25% notes due 2026 tightened to 170 bps offered in secondary trading, according to a market source.

Bunge Ltd. Finance priced $700 million of the notes (Baa2/BBB/BBB) on Wednesday at a spread of 175 bps over Treasuries.

The agribusiness and food company is based in White Plains, N.Y.

Black Hills firms

Black Hills’ 3.15% senior notes due 2027 traded 5 bps tighter at 160 bps offered, according to a market source.

The company priced $400 million of the notes (Baa1/BBB/BBB+) on Wednesday at a spread of 165 bps over Treasuries.

The energy company is based in Rapid City, S.D.

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