Morning Commentary: General Motors, PepsiCo in pipeline; Viacom mostly flat; CDX stable

By Cristal Cody

Eureka Springs, Ark., Oct. 3 – High-grade issuers including General Motors Financial Co., Inc., Xylem Inc. and PepsiCo, Inc. plan to tap the primary market on Monday, while total high-grade bond volume is expected to slow to the $15 billion to $20 billion area for the week.

In the secondary market, Viacom Inc.’s new 3.45% senior notes due 2026 traded mostly unchanged.

The Markit CDX North American Investment Grade index was stable early Monday at a spread of 75 basis points.

The three-month Libor yield rose 1 bp to 85 bps.

On Friday, $15.28 billion of investment-grade issues were traded, according to Trace.

Viacom mostly unchanged

Viacom’s 3.45% notes due 2026 traded flat to about 1 bp softer at 187 bps offered in the secondary market, a source said.

The notes (Baa3/BBB-/BBB) traded on Friday at 189 bps bid, 186 bps offered.

The company priced $900 million of the notes on Thursday at a spread of Treasuries plus 195 bps.

Viacom is a New York City-based diversified media company with interests focused in cinema and cable television.

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