Morning Commentary: Camden Property on tap; IADB offers floaters; FHLB sells $2 billion

By Cristal Cody

Tupelo, Miss., June 6 – High-grade market action slowed early Thursday with just one registered corporate issuer marketing bonds after heavy volume in the previous session.

Camden Property Trust is offering new dollar-denominated fixed-rate notes.

Also, the Inter-American Development Bank is marketing $500 million of global floating-rate notes due March 15, 2022 to price on Thursday, a source said.

Initial price talk was in the Libor plus 3 basis points area.

Meanwhile, FHLBank System priced $2 billion of 1.875% two-year Global notes with a spread of Treasuries plus 6 bps early Thursday.

Week to date, about $23 billion of high-grade bonds have priced, helped by heavy supply on Wednesday.

Investment-grade issuers priced about $14 billion of bonds on Wednesday, more than $6 billion of notes on Tuesday and about $2.5 billion of bonds on Monday.

About $10 billion to $15 billion of issuance was expected by market sources for the week.

Supply week to date has been led by HCA Inc.’s $5 billion three-part offering of split-rated senior secured notes that priced in the previous session.

Secondary trading volume has been strong over the past two sessions. On Wednesday, $23.62 billion of high-grade corporate issues traded, compared to $24.44 billion on Tuesday and $17.96 billion on Monday, according to Trace data.

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