Morning Commentary: Air Lease plans Canadian dollar bond deal; pre-holiday supply thin

By Cristal Cody

Tupelo, Miss., Nov. 26 – Air Lease Corp. is on deck with a registered offering of Canadian dollar-denominated five-year notes in the high-grade bond market on Tuesday.

The company was last in the dollar-denominated primary market on Sept. 9 when it priced $1.1 billion of medium-term notes in two tranches.

No dollar-denominated issues were reported being offered over the morning.

Market activity was mostly quiet at the start of the day, a source said.

Issuance is forecast to remain light this week with the bond markets closed on Thursday and closing early on Friday for the Thanksgiving Day holiday.

On Monday, volume included a $3 billion two-part offering of senior notes from DNB Bank ASA and a $750 million sale of long five-year senior notes from Mastercard Inc.

Market sources expect up to about $5 billion of new investment-grade paper to price this week.

While supply was light on Monday, high-grade corporate secondary market volume was strong with $21.99 billion of bonds traded, according to Trace data.

Intel Corp.’s senior notes (A1/A+/A+) that priced a week ago traded better over the morning, a source said.

The company’s 2.45% senior notes due Nov. 15, 2029 improved to 100.67 from 100.07 on Monday.

The notes went out on Monday flat at 67 basis points bid, a market source said.

Intel sold $1.25 billion of the 10-year notes on Nov. 18 at 99.868 to yield 2.465%, or a spread of 65 bps over Treasuries.

Intel’s 3.25% notes due Nov. 15, 2049 climbed to 102.56 early Tuesday after ending the previous session at 101.83 in heavy trading.

The Santa Clara, Calif.-based semiconductor chip maker sold $1.5 billion of the 30-year notes in the Nov. 18 offering at 99.943 to yield 3.253%, or a Treasuries plus 95 bps spread.

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