Morning Commentary: Winter storm impacts deal action; Hanmi plans sale; Verizon notes improve

By Cristal Cody

Tupelo, Miss., March 14 – Deal action in the high-grade bond market is expected to slow on Tuesday while a winter storm impacts the U.S. East Coast.

At least one issuer is in the pipeline. Hanmi Financial Corp. announced plans to price an offering of 10-year fixed-to-floating-rate subordinated notes.

About $25 billion to $30 billion of bond volume was expected for the week, with issuance initially forecast to be heavy over the first two sessions before the Federal Reserve wraps its policy meeting on Wednesday.

In the secondary market, Verizon Communications Inc.’s new and existing bonds (Baa1/BBB+/A-) traded slightly better as the session opened.

The three-month Libor yield was unchanged at 1.12%, a source said.

On Monday, $16.9 billion of investment-grade issues were traded, according to Trace.

Verizon better

Verizon Communications’ 4.125% notes due March 16, 2027 were better early Tuesday at 99.43 in the secondary market, a source said.

The $3.25 billion tranche of 10-year notes priced on Monday at 99.256 and a spread of Treasuries plus 160 basis points.

Verizon’s existing 2.625% notes due Aug. 15, 2026 edged up early Tuesday to 88.90 from where the bonds went out on Monday at 88.37.

Verizon sold $2.25 billion of the notes on July 27 at 99.74 and a spread of Treasuries plus 115 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.