Morning Commentary: Energy, real estate issuers in pipeline; DTE Energy up; Verizon better

By Cristal Cody

Tupelo, Miss., March 22 – Energy and real estate issuers filled the investment-grade deal pipeline early Wednesday with planned bond offerings.

Edison International, parent holding company of Southern California Edison Co., is marketing three-year senior notes. Southern California Edison sold $700 million of 30-year first and refunding mortgage bonds on Tuesday.

Duke Energy Ohio, Inc. plans to tap its 3.7% first mortgage bonds due June 15, 2046 on Wednesday.

Kimco Realty Corp. is offering new notes, while Ventas Realty, LP is eying a two-part senior notes deal.

Energy bonds have traded mostly better in the secondary market in 2017.

DTE Energy Co.’s 3.8% senior notes due March 15, 2027 that priced earlier in the month were active over the morning and improved more than 2 points since the bonds were last traded.

In other secondary trading, Verizon Communications Inc.’s 4.125% notes due March 16, 2027 improved modestly.

Secondary trading volume rose to $20.52 billion on Tuesday, compared to $13.7 billion of investment-grade bonds traded on Monday, according to Trace.

DTE Energy stronger

DTE Energy’s 3.8% senior notes due March 15, 2027 climbed to 101.43 in secondary trading on Wednesday, a market source said.

The notes last traded on Thursday at 99.18.

The company sold $500 million of the notes (Baa1/BBB/BBB+) on March 8 at 99.736 to yield 3.832%, or a spread of 128 basis points over Treasuries.

DTE is a Detroit-based diversified energy company.

Verizon improves

Verizon Communications’ 4.125% notes due March 16, 2027 traded about a dime better early Wednesday at 101.97 from where the bonds went out on Tuesday, according to a market source.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at 99.256 and a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

© 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.