Morning Commentary: High-grade primary, secondary strong; Credit Suisse flat; Tyson firms

By Cristal Cody

Tupelo, Miss., Sept. 8 – A busy round of investment-grade issuance is slated for Monday following the surge of deals brought over the previous short holiday week, according to market sources.

Issuers in Monday’s lineup include Kinder Morgan Energy Partners LP, PECO Energy Co., Valmont Industries, Inc., Brandywine Operating Partnership, LP, Starwood Hotels & Resorts Worldwide Inc. and Southern California Gas Co.

“There were no new issues on Friday, leaving the week’s investment-grade issuance at $58.1 billion, the highest weekly volume of 2014,” RBC Capital Markets, LLC analysts said in a note. “The final trade count for investment-grade secondary trading was $11.3 billion, the busiest Friday since May 30.”

After holding steady for most of the previous week, the Markit CDX North American Investment Grade series 22 index narrowed 1 basis point to a spread of 56 bps on Friday.

In the secondary market, Credit Suisse AG’s 3.625% notes due 2024 traded flat to 1 bp softer, a market source said.

Tyson Foods Inc.’s 5.15% senior notes due 2044 were quoted 2 bps tighter at the start of the session.

Credit Suisse mostly flat

Credit Suisse’s 3.625% notes due 2024 (A1/A/) traded flat to 1 bp weaker at 118 bps offered, a market source said early Monday.

Credit Suisse, acting through its New York branch, sold $3 billion of the 10-year notes on Thursday at a spread of Treasuries plus 125 bps.

The financial services company is based in Zurich.

Tyson improves

Tyson Foods’ 5.15% bonds due 2044 (Baa3/BBB/BBB) traded 2 bps better at 165 bps offered in the secondary market, a source said.

Tyson sold $500 million of the bonds on Aug. 5 at Treasuries plus 190 bps.

The beef, pork and poultry company is based in Springdale, Ark.

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