Morning Commentary: Oneok, Prudential, Martin Marietta, Entergy Texas offer bonds

By Cristal Cody

Tupelo, Miss., March 5 – Several investment-grade issuers marketed bond deals early Thursday following back-to-back sessions of strong volume after coronavirus pandemic fears sent the financial markets into a tailspin last week.

Oneok Inc. is offering three tranches of guaranteed senior notes due 2025, 2030 and 2050.

Prudential Financial, Inc. also intends to price three tranches of notes, including six-year notes, 10-year notes and 20-year notes.

Martin Marietta Materials Inc. expects to sell 10-year fixed-rate senior notes.

Entergy Texas Inc. plans to tap its 3.55% first mortgage bonds due Sept. 30, 2049 on Thursday.

In the sovereign, supranational and agency market, Kommunalbanken AS is offering dollar-denominated five-year global notes that are initially talked to price at the mid-swaps plus 17 basis points area.

High-grade issuers reportedly priced more than $18 billion of bonds over Wednesday’s session following more than $6 billion of supply on Tuesday and a quiet session on Monday.

The Federal Reserve cut the Federal Funds rate on Tuesday by 50 bps to a target range of 1% to 1.25% on concerns posed by the coronavirus to economic activity.

Up to about $15 billion of bond supply was forecast this week.

New issues are trading mostly better in the secondary market, a source said.

Cigna Corp.’s $3.5 billion of senior notes (Baa2/A-/BBB) that priced in three tranches on Wednesday tightened about 8 bps to 12 bps across the tranches.

Cigna’s 2.4% 10-year notes improved to the 134 bps area.

The company sold $1.5 billion of the 10-year notes at 99.832 to yield 2.419% and a spread of Treasuries plus 142 bps.

Initial price talk was in the 165 bps spread area.

Overall high-grade secondary market volume totaled $25.66 billion on Wednesday, Trace data shows.

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