Morning Commentary: Goldman Sachs markets three tranches; CPPIB sets deal spread; AT&T trades

By Cristal Cody

Tupelo, Miss., Oct. 24 – Goldman Sachs Group, Inc. is underway Tuesday morning marketing a three-tranche offering of floating- and fixed-to-floating-rate notes.

In addition, CPPIB Capital Inc. plans to price its previously reported $1 billion no-grow offering of 10-year medium-term notes on Tuesday at mid-swaps plus 40 basis points, a source said early Tuesday.

About $20 billion of bond issuance is expected over the week, according to a market source.

In the high-grade secondary market, trading volume on Monday totaled $15.52 billion, Trace reported.

AT&T Inc.’s bonds (Baa1/BBB+/A-) continue to be heavily traded in front of the company’s $85.4 billion cash and stock acquisition of Time Warner Inc. (Baa2/BBB/BBB+) expected to close before the end of the year.

Early Tuesday, AT&T’s 3.9% notes due Aug. 14, 2027 traded mid-morning at 99.95, compared to 99.99 on Monday, a source said.

AT&T sold $5 billion of the notes on July 27 at 99.827 to yield 3.92% and a spread of 160 bps over Treasuries.

Time Warner’s 2.95% notes due July 15, 2026 were not active over the morning and last traded on Monday at 95.03, a source said.

The New York-based media and entertainment company sold $800 million of the notes on May 5, 2016 at 98.70 to yield 3.1%, or a spread of Treasuries plus 135 bps.

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