Morning Commentary: Santander, Packaging Corp. in deal pipeline; market awaits Fed hike

By Cristal Cody

Tupelo, Miss., Dec. 11 – Several issuers announced plans on Monday to tap the investment-grade bond market.

Santander Holdings USA, Inc. plans a Rule 144A and Regulation S private offering of senior notes.

Packaging Corp. of America is in the deal pipeline with senior notes due 2020 and 2027.

Also, Kimco Realty Corp. is marketing series M cumulative redeemable preferred stock.

Deal action is forecast to stay light over the week with about $10 billion of supply expected by market sources.

Volume is expected to be front-loaded for the week with an anticipated mid-week rate hike by the Federal Reserve following its two-day meeting on Wednesday, a source said. The Federal Reserve is forecast to raise rates by 25 basis points, according to a market source.

Elsewhere, the three-month Libor yield rose 1 bp to 1.55% on Monday, a source said.

In the secondary market, Santander Holdings’ 4.4% notes due July 13, 2027 traded at 102.27 early Monday, down from where the notes were last seen on Thursday at 103.27, according to a source.

Santander sold $800 million of the notes (Baa3/BBB+) on July 10.

In the secondary market, a total of $14.72 billion of high-grade bonds were traded on Friday, 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.