Morning Commentary: Southwestern Public Service, Santander, EIB, IADB notes on deck

By Cristal Cody

Tupelo, Miss., June 11 – Deal volume remained active in the high-grade primary market early Tuesday after a flood of issuance topped $17 billion on Monday.

On Tuesday, Southwestern Public Service Co. (Baa2/A-/BBB) announced it intends to price $300 million of first mortgage bonds due June 15, 2049.

Santander UK plc (Aa2/A/A+) is offering registered fixed-rate notes.

In other supply, the European Investment Bank (Aaa/AAA/AAA) is marketing $1 billion of three-year floating-rate notes in a Rule 144A and Regulation S transaction on Tuesday.

The notes due June 10, 2022 were initially talked to price at the Secured Overnight Financing Rate plus 30 basis points area.

In other sovereign, supranational and agency supply, the Inter-American Development Bank (Aaa/AAA) plans to price a benchmark sized offering of 10-year global notes on Tuesday.

The notes due June 18, 2029 were initially talked to price in the mid-swaps plus 16 bps area.

Meanwhile, back in the corporate space, PartnerRe Ltd. (Baa2/A-/A-) is holding fixed income investor calls on Tuesday for a dollar-denominated offering of senior notes.

Also on Tuesday, AXIS Specialty Finance plc will hold fixed income investor calls for a $300 million offering of 10-year senior notes (Baa1/A-).

Ten high-grade corporate issuers priced more than $17 billion of bonds on Monday, led by Fiserv, Inc.’s $9 billion four-part offering of senior notes.

About $20 billion to $25 billion of issuance is anticipated by syndicate sources this week.

In the secondary market, Fiserv’s new notes improved about 5 bps across the four tranches, a source said.

In the broader secondary market, Monday’s session ended with $17.64 billion of high-grade bonds traded, according to Trace data.

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