Morning Commentary: FedEx, Westpac among issuers in pipeline; JPMorgan paper improves

By Cristal Cody

Eureka Springs, Ark., Jan. 3 – High-grade bond issuers signaled plans early Tuesday to tap the primary market in the first session of 2017.

FedEx Corp. intends to sell two tranches of notes.

Westpac Banking Corp. plans a two-part offering of fixed- and floating-rate notes.

Santander UK Group Holdings plc is marketing seven-year notes.

Also, Duke Energy Florida, LLC is preparing to price first mortgage bonds due 2020 and 2027.

Bank and financial paper was active in the secondary market over the morning.

JPMorgan Chase & Co.’s 2.972% notes due Jan. 15, 2023, an issue priced at the start of December, rose more than 1 point from Friday.

The three-month Libor yield was unchanged at 100 basis points early Tuesday, according to a market source.

Investment-grade secondary bond trading volume totaled $2.5 billion on Friday, according to Trace.

JPMorgan better

JPMorgan Chase’s 2.972% notes due 2023 traded better early Tuesday at 100.76 from 99.56 on Friday, according to a market source.

JPMorgan priced $1.5 billion of the notes (A3/A-/) on Dec. 1 at par with a spread of Treasuries plus 108 bps.

The financial services company is based in New York City.

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