Caterpillar reopens floaters; high-grade supply thins in front of holiday; bonds mixed

By Cristal Cody

Tupelo, Miss., Aug. 27 – Caterpillar Financial Services Corp. priced a $750 million reopening of its medium-term floating-rate notes due March 15, 2021 on Monday as the sole reported issuer in the high-grade corporate and SSA bond markets.

Deal volume is expected to stay anemic until after the Labor Day holiday with only up to $5 billion of supply forecast by market sources for this week.

Trading desks also are thin with many out for the last week of summer holidays, sources said.

In the secondary market, AstraZeneca plc’s 4% notes due Jan. 17, 2029 headed out up at 100.125 on Monday from 99.75 on Friday, a market source said.

Amazon.com, Inc.’s $3.5 billion of 3.15% notes due Aug. 22, 2027 (Baa1/AA-/) priced a year ago have been volatile in secondary trading over the past week and traded about 6 bps wider on Monday to 77 bps bid, a market source said.

Elsewhere, AT&T Inc.’s investment-grade bonds (Baa2/BBB/A-) were seen trading flat to about 6 bps tighter, while Verizon Communications Inc.’s bonds (Baa1/BBB+/A-) traded about 1 bp tighter to 7 bps wider, a source said.

Comcast Corp.’s bonds (A3/A-/A-) headed about 4 bps to 6 bps better over the day.

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