Morning Commentary: Intel notes improve; PPL wrapped around issuance; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., May 16 – New investment-grade corporate bonds priced in the previous week were mixed in secondary trading early Monday, while credit spreads opened the session about 1 basis point tighter.

Intel Corp.’s senior notes (A1/A+/A+) that priced in three tranches on Thursday traded about 1 bp to 5 bps tighter than issuance in the secondary market.

PPL Capital Funding Inc.’s 3.1% senior notes due 2026 (Baa2/BBB+) were wrapped around issuance.

The Markit CDX North American Investment Grade index opened the day about 1 bp tighter at a spread of 82 bps.

The three-month Libor yield was stable early Monday at 63 bps.

Intel improves

Intel’s 1.7% notes due 2021 were quoted at 49 bps offered in the secondary market early Monday, according to a market source.

The company sold $500 million of the five-year notes on Thursday at 50 bps over Treasuries.

Intel’s 2.6% notes due 2026 were seen trading at 85 bps offered. The notes priced in a $1 billion tranche in Thursday’s sale at 87.5 bps over Treasuries.

Intel is a semiconductor chip maker based in Santa Clara, Calif.

PPL flat

PPL Capital Funding’s 3.1% notes due 2026 traded wrapped around issuance at 135 bps offered in the secondary market, a source said.

The company sold $650 million of the notes on Thursday at 135 bps over Treasuries.

The energy and utility holding company is based in Allentown, Pa.

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