Morning Commentary: High-grade bond markets slow down after active week of issuance

By Devika Patel

Knoxville, Tenn., Sept. 27 – Primary activity in the investment-grade bond market was quiet on Friday morning with no new deals announced or pricing.

The week, however, had been fairly busy with several deals announced.

On Monday, Ford Motor Credit Co. LLC, the financing arm of Dearborn, Mich.-based automaker Ford Motor Co., launched $600 million of 3.55% three-year notes, and St. Louis-based Union Electric Co., a public utility holding company and unit of Ameren Corp., reported that it priced $330 million of 3.25% 30-year first mortgage bonds.

Also, Houston-based REIT Camden Property Trust sold $300 million of 3.35% notes due Nov. 1, 2049, and Paccar Financial Corp., a financing arm of Bellevue, Wash.-based Paccar Inc., priced $300 million of 2% three-year medium-term notes.

On Tuesday, Los Angeles-based REIT Hudson Pacific Properties, LP sold $400 million of 3.25% senior notes due Jan. 15, 2030.

Houston-based Noble Energy Inc., a crude oil and natural gas exploration and production company, priced $1 billion of notes in two parts.

Also, on Tuesday, Tokyo-based Sumitomo Mitsui Financial Group Inc., a banking and financial company, sold $1.5 billion of fixed-rate senior notes in two tranches, and Waltham, Mass.-based Thermo Fisher Scientific Inc., a science technology company, priced $900 million of 2.6% 10-year senior notes.

On Wednesday, the Province of Ontario priced $1.25 billion of 2% 10-year bonds, and Plainfield, Ind.-based Duke Energy Indiana, LLC, an electricity provider, sold $500 million of 3.25% 30-year first mortgage bonds.

Also, Dallas-based Atmos Energy Corp., a natural gas distributor and pipeline company, sold $800 million of senior notes in two tranches.

In addition, New York-based BGC Partners, Inc., a financial services company, priced $300 million of 3.75% five-year senior notes on Wednesday.

On Thursday, Rapid City, S.D.-based Black Hills Corp., a utility company, sold $700 million of senior notes in two parts.

LYB International Finance III LLC, a subsidiary of LyondellBasell Industries NV, a Houston-based chemical company with executive offices in London and incorporated in the Netherlands, priced $1 billion of 4.2% 30-year notes.

Also, Irvine, Calif.-based REIT Sabra Health Care LP and Sabra Capital Corp. priced $300 million of 3.9% senior notes due 2029.

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