Morning Commentary: Ford Motor Credit, MidAmerican Energy in pipeline; Hewlett-Packard mixed

By Cristal Cody

Tupelo, Miss., Oct. 5 – Primary action from investment-grade companies including Ford Motor Credit Co. LLC and MidAmerican Energy Co. is expected on Monday, while bonds were mixed in early secondary trading.

Ford Motor Credit plans a two-part sale of fixed-rate and floating-rate notes.

MidAmerican Energy intends to reopen its company’s 3.5% first mortgage bonds due 2024 and price new first mortgage bonds due 2046.

About $10 billion to $15 billion of high-grade issuance is expected for the week.

In the secondary market, Hewlett-Packard Enterprise Co.’s senior notes (Baa2/BBB/A-) that were brought to market in the previous week were mixed.

The Markit CDX North American Investment Grade 25 index firmed 2 basis points to close on Friday at a spread of 93 bps.

Hewlett-Packard mixed

Hewlett-Packard Enterprise’s 3.6% notes due 2020 traded 5 bps tighter at 216 bps offered in the secondary market, a source said.

The company sold $3 billion of the notes on Wednesday at Treasuries plus 225 bps.

Hewlett-Packard’s 4.9% notes due 2025 eased 2 bps to 298 bps offered. The company priced $2.5 billion of the notes at Treasuries plus 290 bps.

The tranche of 6.35% bonds due 2045 traded 2 bps weaker at 298 bps offered. The company sold $1.5 billion of the bonds at s spread of Treasuries plus 350 bps.

Hewlett Packard Enterprise is a Palo Alto, Calif.-based information technology company and subsidiary of the Hewlett-Packard Co.

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