Morning Commentary: Deal pipeline builds; CSX eyes three-tranche offering; PECO offers bonds

By Cristal Cody

Tupelo, Miss., Feb. 15 – After corporate issuers stayed out of the investment-grade primary market on Wednesday, at least two companies announced plans early Thursday to price new bonds.

CSX Corp. is marketing three tranches of notes.

Also, PECO Energy Co. intends to price 30-year first and refunding mortgage bonds.

On Wednesday, Landwirtschaftliche Rentenbank was the sole reported issuer with a $2 billion offering of two-year notes.

About $15 billion to $20 billion of bond volume was expected by syndicate sources for the week, but issuance has been light so far with less than $5 billion of corporate supply.

The Chinese financial markets are closed beginning Thursday for the Chinese New Year.

The three-month Libor yield was up 1 basis point to 1.84% at the start of the day, a source said.

Elsewhere, secondary trading volume totaled $19.74 billion on Wednesday, according to Trace.

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