Morning Commentary: High-grade issuance resumes; UnitedHealth, Concho, Digital Realty among issuers

By Cristal Cody

Tupelo, Miss., June 14 – High-grade bond issuers made up for lost time early Thursday with an array of deal announcements.

UnitedHealth Group Inc. plans to tap the primary market with five tranches of notes.

Concho Resources Inc. intends to sell two tranches of guaranteed senior notes, including 10-year notes that were initially talked to price at a spread of Treasuries plus 160 basis points and 30-year notes that were initially talked to price with a 200 bps spread over Treasuries.

Also, Digital Realty Trust LP announced details for a note sale following the company’s fixed income investor calls held Wednesday.

CME Group Inc. plans to price two tranches of notes to help finance the cash portion of its acquisition of NEX Group plc.

In other expected supply, General Motors Financial Co. Inc. intends to sell five-year senior notes due 2023.

Ryder System, Inc. plans to sell new medium-term notes.

Lloyds Banking Group plc is offering senior floating-rate notes due 2021.

Also, Public Service Co. of Colorado intends to price two tranches of first mortgage bonds.

Issuance stayed quiet on Wednesday amid the Federal Reserve’s announcement of a 25 basis point rate hike.

More than $12 billion of investment-grade bonds priced over Monday’s and Tuesday’s sessions.

Syndicate sources forecast about $15 billion to $20 billion of total supply for the week.

Elsewhere, high-grade secondary market volume rose to $20.37 billion on Wednesday from $19.63 billion on Tuesday and $15.09 billion on Monday, according to Trace.

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