Morning Commentary: Verizon offers notes; IBM’s new bonds soften in secondary market

By Cristal Cody

Eureka Springs, Ark., Jan. 25 – Verizon Communications Inc. is in Wednesday’s high-grade deal pipeline with plans to price an offering of dollar-denominated notes that will be listed on the Taipei Exchange.

In the secondary market, International Business Machines Corp.’s senior notes (Aa3/AA-/A+) that priced on Tuesday traded modestly better than issuance in initial aftermarket trading but were weaker early Wednesday.

The three-month Libor yield was unchanged at 1.04% at the start of the session, a source said.

Secondary trading volume rose to $19.7 billion on Tuesday from $17.09 billion on Monday with the majority of issues softening, according to Trace. Of the 5,608 issues traded on Tuesday, 3,399 declined.

IBM softens

IBM’s 2.5% notes due 2022 traded wrapped around issuance early Wednesday at 99.87 after improving to 99.94 on Tuesday, according to a market source.

The company sold $1 billion of the five-year notes on Tuesday at 99.869 to yield 2.528%, or 60 basis points over Treasuries.

IBM’s 3.3% notes due 2027 traded slightly weaker early Wednesday at 99.64 after improving to 99.70 on Tuesday.

The company sold $500 million of the 10-year notes on Tuesday at 99.469 to yield 3.363%, or 90 bps over Treasuries.

The information technology and computer company is based in Armonk, N.Y.

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