Morning Commentary: Honeywell, Huntington Bancshares on tap; Las Vegas Sands tightens

By Cristal Cody

Tupelo, Miss., July 30 – Two high-grade companies offered new bonds at the start of Tuesday’s session following more than $15 billion of supply on Monday.

Honeywell International Inc. plans to price four tranches of senior notes, including one tranche of floating-rate notes.

Financial supply also continues this week with an offering of fixed-rate senior notes from Huntington Bancshares Inc. on Tuesday.

In other supply, the Inter-American Development Bank plans to price a $250 million add-on to its floating-rate notes due March 15, 2022. Initial price talk was in the Libor plus 4 basis points area.

Issuance was predicted to be front-loaded this week ahead of a possible rate cut following the Federal Reserve’s monetary policy meeting on Wednesday, sources report.

About $20 billion to $25 billion of supply on average is expected by syndicate sources this week.

Primary action was dominated by several $1 billion-plus bond deals on Monday, including Boeing Co.’s $5.5 billion six-tranche offering of senior notes and Las Vegas Sands Corp.’s $3.5 billion three-part offering of senior notes.

In the secondary market, Las Vegas Sands’ notes (Baa3/BBB-/BBB-) tightened about 5 bps to 10 bps, a market source said.

The Las Vegas-based resort developer’s 3.5% notes due Aug. 8, 2026 traded about 10 bps better in the secondary market. Las Vegas Sands sold $1 billion of the seven-year notes at a Treasuries plus 162.5 bps spread.

During Monday’s session, a total of $19.11 billion of high-grade bonds were traded in the secondary market, according to Trace data.

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