Morning Commentary: IHS Markit plans tap of 10-year notes; BNY Mellon firms; 3M mixed

By Cristal Cody

Tupelo, Miss., Aug. 21 – IHS Markit Ltd. is marketing an add-on to its 4.25% senior notes due May 1, 2029 on Wednesday in the high-grade primary market.

Otherwise, activity was light over the morning with no other reported issuers offering bonds.

Market participants are expected to keep an eye Wednesday on the release of minutes from the Federal Reserve’s July policy meeting in which rates were lowered for clues to additional rate decreases, a source said.

Week to date, corporate issuers have priced more than $9 billion of bonds, near the $10 billion of supply forecast for the week.

In the secondary market, new issues were mixed.

Bank of New York Mellon Corp.’s $1 billion of 1.95% senior notes due Aug. 23, 2022 (A1/A/AA-) that priced on Tuesday tightened 4 basis points in the secondary market, a source said.

The notes priced at a spread of Treasuries plus 52 bps.

3M Co.’s $3.25 billion four-part offering of notes (A1/AA-) sold on Monday were mixed but traded about 1 bp to 3 bps tighter than issuance, a market source said.

The company’s 2.375% notes due Aug. 26, 2029 traded about 1 bp better. The $1 billion tranche of notes priced with a Treasuries plus 90 bps spread.

Investment-grade secondary market volume rose to $16.44 billion on Tuesday from $15.4 billion on Monday, according to Trace.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.