Morning Commentary: Investment-grade supply thin; Swedish Export Credit offers notes

By Cristal Cody

Tupelo, Miss., Nov. 2 – High-grade primary action stayed mostly quiet at the start of Monday’s session with focus this week on the U.S. presidential election, the Federal Reserve’s two-day monetary policy meeting and the October jobs report.

Swedish Export Credit plans to price $600 million of 0.25% notes due May 10, 2022 in an offering expected to close on Thursday.

Anywhere from zero to about $10 billion of investment-grade supply is anticipated this week, according to syndicate sources.

November supply is forecast to total about $50 billion to $75 billion for the month.

Issuance is expected to be thin with the election on Tuesday, the Federal Reserve’s meeting that ends on Thursday and the Labor Department’s release of the October non-farm payroll report on Friday, sources said.

Earnings reports also remain in focus this week with hundreds of companies set to release reports over the week, including more than 200 on Monday.

High-grade issuers releasing earnings reports on Monday include Berkshire Hathaway Inc., Clorox Co. and Loews Corp.

The high-grade space was positive at the start of the session.

The iShares iBoxx Investment Grade Corporate Bond ETF rose 0.46% to $134.06.

The Pimco Investment Grade Corporate Bond index gained 0.49% to $114.27.

Stocks also were up in early trading with the Dow Jones industrial average 1.42% better.

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