Midday Commentary: Primary active with three offerings; traders focus on Heinz bonds, low volume

By Andrea Heisinger

New York, Feb. 19 - Three bond offerings were announced by investment-grade issuers on Tuesday to begin the short week.

Wyndham Worldwide Corp., Cardinal Health, Inc. and Ryder System, Inc. each jumped into the market following the three-day weekend in observance of Presidents Day.

Cardinal Health is tapping the market to help pay for the purchase of AssuraMed, Inc., while Wyndham is using part of the proceeds for the repurchase of two outstanding notes.

In the secondary side of the market, volume was "as to be expected for a day like today," said one trader. He was referring to the light volume that's typical of a day following a long weekend.

"It's definitely not like a Wednesday in January," the trader said.

"Most things are trading mixed," he said, adding that traders focused on bonds from H.J. Heinz Co.

Last week it was announced that the ketchup and food company would be acquired by Warren Buffett's Berkshire Hathaway Inc. Over the weekend, news came out that there may have been insider trading in Heinz bonds.

As for the new issues announced on Tuesday, the trader said that initial talk on the bonds would likely change, as would gray market trading quotes.

"They're likely to walk that talk in," he said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.