Light volume forecast for holiday week; Abbott, Pfizer mixed; Chevron Phillips Chemical firms

By Cristal Cody

Eureka Springs, Ark., Nov. 18 – High-grade primary action stayed quiet on Friday, and light volume is expected over the Thanksgiving Day holiday week, according to sources on Friday.

About $5 billion to as much as $10 billion of issuance is forecast with most of the action front-loaded in the week ahead, a source said.

The Markit CDX North American Investment Grade index softened 2 basis points over the day to close at a spread of 77 bps.

In the secondary market, Abbott Laboratories’ $15.1 billion of senior notes (Baa3/A+) priced in six tranches on Thursday were mixed Friday.

Pfizer Inc.’s $6 billion of notes (A1/AA/A+) sold in five tranches on Monday traded flat to about 3 bps better than issuance on Friday.

Chevron Phillips Chemical Co. LLC’s 3.4% senior notes due 2026 brought to market on Thursday firmed 6 bps on the bid side.

Abbot mixed

Abbott Laboratories’ 2.35% notes due 2019 improved to 103 bps bid, 101 bps offered in secondary trading, a source said. The company sold $2.85 billion of the notes on Thursday at 105 bps over Treasuries.

Abbott’s 3.75% notes due 2026 softened to 156 bps bid, 153 bps offered on Friday. The $3 billion tranche priced on Thursday at a spread of 155 bps over Treasuries.

The pharmaceutical health-care products company is based in Abbott Park, Ill.

Pfizer flat to better

Pfizer’s 3% notes due 2026 traded at 82 bps bid, 81 bps offered on Friday, according to a market source.

The company sold $1.75 billion of the 10-year notes on Monday at a spread of 85 bps over Treasuries.

Pfizer’s 4.125% notes due 2046 were quoted at 110 bps bid, 108 bps offered in the secondary market.

The long bonds priced in a $1.25 billion tranche on Monday at a spread of 110 bps over Treasuries.

The biopharmaceutical company is based in Foster City, Calif.

Chevron Phillips improves

Chevron Phillips Chemical’s 3.4% senior notes due 2026 tightened to 109 bps bid, 107 bps offered in secondary trading, a market source said on Friday.

The company sold $700 million of the 10-year notes (A2/A-/) on Thursday at a spread of 115 bps plus Treasuries.

Chevron Phillips Chemical is a Woodlands, Texas-based petrochemical company owned by Chevron Corp. and Phillips 66.

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