Morning Commentary: New issue supply strong; Hewlett-Packard, ADM, General Dynamics to tap market

By Cristal Cody

Tupelo, Miss., Sept. 11 – Heavy issuance is expected over Monday’s session in the high-grade bond market, with numerous bond deals in the works.

Hewlett Packard Enterprise Co., Archer-Daniels-Midland Co., Textron Inc., Virginia Electric and Power Co., General Dynamics Corp. and PECO Energy Co. are offering notes.

Also on Monday, Syngenta AG and the Goodman Group intend to kick off roadshows for multi-tranche deals.

Market sources expect about $30 billion to $35 billion of supply over the week.

Hewlett-Packard Enterprise (Baa2/BBB/BBB+) on Friday held fixed income investor calls for its offering.

In the secondary market, Hewlett Packard Enterprise’s 4.9% notes due Oct. 15, 2025 were trading actively over the morning and last seen at 106.08, a source said. The notes went out on Friday at 105.06.

The Palo Alto, Calif.-based provider of technology services sold $2.5 billion of the notes on Sept. 30, 2015 at 99.725 to yield 4.935%, or a spread of Treasuries plus 290 basis points.

On Friday, secondary trading volume totaled $12.22 billion, according to Trace.

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