Morning Commentary: Duke Energy lines up deal; strong supply eyed; Walmart holds calls

By Cristal Cody

Tupelo, Miss., June 18 – A couple of bond issuers announced plans early Monday to tap the high-grade primary market in what is expected to be a strong week of issuance.

Duke Energy Florida, LLC is marketing two tranches of first mortgage bonds.

Prospect Capital Corp. also plans a tap of its 5.875% senior notes due March 15, 2023 (BBB-//Kroll: BBB) that were originally issued in 2013.

About $35 billion to as much as $50 billion of volume is forecast for the week, according to syndicate sources.

Some bond issuers may hold off until after Bayer AG (Baa1/BBB/A-) prices a major Rule 144A and Regulation S deal that is expected to come in the front half of the week, a source said. Bayer completed a three-day session of fixed-income investor calls on Friday.

In other action on Monday, Walmart Inc. will hold fixed income investor calls for a potential deal, according to a source.

Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the arrangers.

Elsewhere, the secondary market ended Friday with $13.7 billion of investment-grade trading volume, according to Trace.

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