Morning Commentary: Investment-grade bond supply thins; Church & Dwight markets notes

By Cristal Cody

Tupelo, Miss., July 20 – Following three back-to-back sessions of strong primary action, the high-grade bond deal pipeline slowed early Thursday.

One reported issuer, Church & Dwight Co., Inc., is marketing four tranches of senior notes, including one floating-rate note.

Market sources expected additional bank and financial paper volume after issuers including Morgan Stanley, Goldman Sachs Group Inc., Bank of America Corp., Mitsubishi UFJ Financial Group, Inc., JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. priced bonds in the first three days of the week.

In the secondary market, Church & Dwight’s bonds were flat, a market source said. The company’s 2.875% notes due Oct. 1, 2022 were unchanged at 101.32. The company sold $400 million of the notes on Sept. 19, 2012 at 99.9 to yield 2.89%.

Church & Dwight’s 2.45% notes due Dec. 15, 2019 were steady early Thursday at 101.32 in the secondary market. The notes priced in a $300 million tranche on Dec. 4, 2014 at 99.94 to yield 2.46%.

Overall secondary trading volume on Wednesday totaled $19.57 billion.

The three-month Libor yield was unchanged at 1.31% at the start of the day, a market source said.

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