Morning Commentary: High-grade supply thin; Salesforce.com offers notes; Anheuser-Busch soft

By Cristal Cody

Tupelo, Miss., April 2 – One investment-grade issuer announced plans early Monday to price senior notes, while overall activity is expected to be fairly quiet during the session with a majority of European markets shut for Easter Monday.

The U.S. markets were closed on Friday.

Syndicate sources forecast about $20 billion to $25 billion of high-grade bond issuance for the week.

Salesforce.com, Inc. was marketing two tranches of senior notes at the start of the session.

Looking at early secondary trading, Anheuser-Busch InBev Worldwide Inc.’s guaranteed senior notes that priced in a $10 billion six-tranche offering in March were mostly softer, according to a market source.

The company’s 4% notes due April 13, 2028 softened to 101.01 over the morning from 101.51 on Thursday.

Anheuser-Busch (A3/A-) sold $2.5 billion of the notes on March 20 at 99.216 to yield 4.096%, or a spread of 120 basis points over Treasuries.

The company's 4.6% bonds due April 15, 2048 traded at 103.13 early Monday. The notes were last seen on Thursday trading at 103.65 in the secondary market.

The Leuven, Belgium-based beer brewer sold $2.5 billion of the bonds at 99.434 to yield 4.635%, or 150 bps over Treasuries.

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