Morning Commentary: Investment-grade primary bond market quiets; Toyota Motor Credit notes improve

By Cristal Cody

Eureka Springs, Ark., Jan. 6 – No issuers were reported in the high-grade deal pipeline early Friday after heavy pricing action over the shortened holiday week.

More than $50 billion of investment-grade issues priced in three sessions during the week, a source said.

Secondary trading has also been strong. On Thursday, $22 billion of investment-grade issues traded, compared to $22.37 billion on Wednesday and $12.8 billion on Tuesday, according to Trace.

Toyota Motor Credit Corp.’s 3.2% senior notes due 2027 that priced on Wednesday improved about 4 basis points in the secondary market.

Three-month Libor rose 1 bp to 1.01% on Friday, according to a market source.

Toyota Motor Credit firms

Toyota Motor Credit’s 3.2% senior notes due 2027 traded about 4 bps tighter than issuance at 76 bps offered in secondary trading, a market source said.

Toyota Motor Credit sold $750 million of the 10-year notes (Aa3/AA-) at 80 bps over Treasuries on Wednesday as part of a $3.5 billion five-tranche deal.

The Torrance, Calif.-based company is the funding arm of auto manufacturer Toyota.

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