Morning Commentary: Busy high-grade primary action on deck; Wells Fargo eases; Allstate flat

By Cristal Cody

Eureka Springs, Ark., Dec. 5 – Heavy primary action is expected over Monday’s session in the investment-grade bond market with at least seven issuers preparing bond deals.

High-grade companies including Ford Motor Co., Dr Pepper Snapple Group Inc. and Delmarva Power & Light Co. are in the deal pipeline.

In the secondary market, Wells Fargo & Co.’s 4.75% notes due 2046 that priced on Thursday traded about 1 basis point softer from where they were seen on Friday.

Allstate Corp.’s new 4.2% senior notes due 2046 were unchanged from Friday in secondary trading.

The three-month Libor yield was up 2 bps to 95 bps early Monday, a source said.

On Friday, $14.95 billion of investment-grade issues were traded, according to Trace.

Wells Fargo softens

Wells Fargo’s 4.75% notes due 2046 eased about 1 bp to 166 bps bid, according to a market source.

The notes traded on Friday at 165 bps bid, 163 bps offered.

Wells Fargo sold $2 billion of the 30-year notes on Thursday at a spread of 165 bps over Treasuries.

The financial services company is based in San Francisco.

Allstate stable

Allstate’s 4.2% notes due 2046 were unchanged from Friday at 106 bps offered in secondary trading, according to a market source.

The bonds were seen on Friday at 109 bps bid, 106 bps offered.

The company sold $700 million of the 30-year notes (A3/A-) on Thursday at spread of 110 bps over Treasuries.

Allstate is a Northbrook, Ill.-based insurance company.

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