Morning Commentary: Lowe’s, Home Depot bonds trade tighter than issuance in secondary market

By Cristal Cody

Tupelo, Miss., Sept. 14 – New bonds from home improvement retailers Lowe’s Cos., Inc. and Home Depot Inc. priced in the previous week continued to trade better than issuance early Monday.

Lowe’s long bonds traded 15 basis points tighter than where the issue priced.

Home Depot’s 3.35% senior notes due 2025 were about 8 bps better than issuance.

The three-month Libor yield was unchanged at 34 bps over the morning.

The Markit CDX North American Investment Grade index closed unchanged on Friday at a spread of 80 bps.

Lowe’s firms

Lowe’s new 4.375% senior notes due 2045 were quoted 2 bps tighter versus opening levels in early secondary trading at 140 bps bid, according to a market source.

The company sold $750 million of the bonds on Wednesday at a spread of Treasuries plus 155 bps.

The home improvement company is based in Mooresville, N.C.

Home Depot unchanged

Home Depot’s 3.35% notes due 2025 traded flat in the secondary market at 109 bps bid, a market source said.

The notes were quoted late Friday afternoon at 109 bps bid, 108 bps offered.

Home Depot sold $1 billion of the notes (A2/A/A) on Tuesday at 117 bps over Treasuries.

The home improvement retailer is based in Atlanta.

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