Morning Commentary: AvalonBay offers notes; FHLB prices; Assurant kicks off investor deal calls

By Cristal Cody

Tupelo, Miss., March 15 – AvalonBay Communities, Inc. announced plans early Thursday to price an offering of fixed-rate medium-term notes (A3/A-) via BofA Merrill Lynch and UBS Securities LLC.

Also on Thursday, the Federal Home Loan Bank System sold $3 billion of 2.375% two-year Global Notes at Treasuries plus 11 basis points.

Elsewhere over the morning, Assurant Inc. (Baa2/BBB+) began holding fixed income investor calls for a three-tranche bond offering, a source said. The investor calls are scheduled to continue on Friday.

The company plans to price five- and 10-year notes and one tranche of 30-year fixed-to-floating rate subordinated notes.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and U.S. Bancorp Investments Inc. are the bookrunners.

High-grade supply has thinned following heavy volume on Monday. On Wednesday, Sprint Corp. and McDonald’s Corp. tapped the primary market.

Meanwhile, the secondary market has been active over the week. On Wednesday, $20.45 billion of investment-grade bonds were traded, compared to $20.53 billion on Tuesday and $18.53 billion on Monday, according to Trace.

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