Morning Commentary: High-grade secondary activity mostly quiet; Walgreen firms; Verizon flat

By Cristal Cody

Tupelo, Miss., Nov. 24 – High-grade market participants geared up for an active primary session to start the short holiday week, while secondary activity was mostly quiet early Monday, according to market sources.

Issuers including Raytheon Co., El Paso Electric Co. and Kinder Morgan, Inc. plan to tap the market over the day.

Walgreens Boots Alliance Inc.’s 3.8% senior notes due 2024 that priced earlier in the month firmed 5 basis points in the secondary market on Monday, according to a market source.

Verizon Communications Inc.’s bonds were mostly flat to modestly weaker, a source said.

On Friday, the Markit CDX North American Investment Grade series 23 index tightened 2 bps to a spread of 64 bps.

Walgreens tightens

Walgreens Boots Alliance’s 3.8% notes due 2024 (Baa2/BBB/) firmed 5 bps to 137 bps offered, a market source said.

The company sold $2 billion of the 10-year notes at Treasuries plus 145 bps as part of an $8 billion seven-tranche offering of bonds on Nov. 6.

Walgreens Boots Alliance is a wholly owned subsidiary of Deerfield, Ill.-based drugstore chain Walgreen Co.

Verizon steady

Verizon’s 5.15% notes due 2023 (Baa1/BBB+/A-) traded unchanged to 1 bp weaker at 134 bps offered, according to a market source.

Verizon sold $11 billion of the notes at Treasuries plus 225 bps on Sept. 11, 2013.

The telecommunications company is based in New York City.

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