Morning Commentary: High-grade deal pipeline takes shape; Pitney Bowes notes modestly better

By Cristal Cody

Tupelo, Miss., May 3 – High-grade issuers began to fill the bond deal pipeline early Wednesday following strong supply on Tuesday.

Northern Trust Corp., AvalonBay Communities, Inc. and Pitney Bowes Inc. are marketing notes.

Also, on Wednesday, the Federal Reserve wraps its two-day monetary policy meeting. Market sources do not expect any major changes from the meeting.

In the secondary market, Pitney Bowes’ 3.375% notes due Oct. 1, 2021 improved modestly early Wednesday.

Secondary trading volume jumped to $18.23 billion on Tuesday compared to $11.95 billion on Monday, according to Trace.

Pitney Bowes better

Pitney Bowes’ 3.375% notes due Oct. 1, 2021 traded up to 99.07 in early secondary trading from where the notes went out on Tuesday at 99.05, according to a market source.

The notes traded on Monday at 98.73.

Pitney Bowes priced $600 million of the notes (Baa3/BBB) on Sept. 15 at 99.724 to yield 3.435%, or a spread of 225 basis points over Treasuries.

Pitney Bowes is a Stamford, Conn.-based provider of services, including eCommerce shipping and mailing.

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