Morning Commentary: Apple, Corning, Japan Bank, Rentenbank offer notes; heavy supply forecast

By Cristal Cody

Tupelo, Miss., Nov. 6 – Several investment-grade issuers announced plans early Monday to price new bonds.

Heavy supply is expected over the remaining two full weeks ahead of the Thanksgiving Day holiday. About $30 billion of bond volume is forecast by market sources for the current week.

In Monday’s deal pipeline, Apple Inc. is offering six tranches of fixed-rate notes.

Corning Inc. intends to price notes due 2057.

Also, Japan Bank for International Cooperation is marketing three tranches of guaranteed bonds.

Landwirtschaftliche Rentenbank plans to sell 10-year guaranteed notes.

In the secondary market, Apple’s existing bonds were active early Monday. The company’s 3% senior notes due June 20, 2027 traded at 100.11 over the morning compared to where the notes went out on Friday at 100.44, a source said.

The Cupertino, Calif.-based computer and mobile communications device company sold $1 billion of the notes (Aa1/AA+/) on June 13 at 99.77 to yield 3.03%, or a spread of Treasuries plus 82 basis points.

Secondary market volume on Friday totaled $13.65 billion, according to Trace.

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