Morning Commentary: EQT, American Campus, Japan Bank, Nippon Life Insurance on deck

By Cristal Cody

Tupelo, Miss., Jan. 15 – Several investment-grade issuers marketed bond deals in the primary market early Wednesday.

EQT Corp. intends to price fixed-rate senior notes due Feb. 1, 2025 and Feb. 1, 2030. The five-year notes are initially talked to price in the 6.25% area. Initial talk on the 10-year tranche is in the 7.125% area.

American Campus Communities Operating Partnership LP is offering registered guaranteed fixed-rate senior notes.

Japan Bank for International Cooperation launched a $2.25 billion registered offering of guaranteed bonds due Jan. 23, 2023 at mid-swaps plus 26 basis points, tighter than initial talk in the mid-swaps plus 31 bps area.

Osaka, Japan-based Nippon Life Insurance Co. is offering dollar-denominated subordinated notes due Jan. 23, 2050. Price talk is in the 3.5% to 3.625% area, revised from initial talk in the 3.75% to 3.875% area.

Bank and financial investment-grade supply was anticipated by market sources following the release of fourth-quarter earnings this week.

JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. all announced registered preferred share offerings on Wednesday following the release of profit results on Tuesday.

Bank of America Corp., BB&T Corp., U.S. Bancorp and Goldman Sachs Group Inc. report earnings on Wednesday, followed by SunTrust Banks Inc., Bank of New York Mellon Corp. and Morgan Stanley on Thursday.

About $30 billion to $35 billion of bond supply is expected this week, according to syndicate sources.

Owl Rock firms

In the secondary market, new issues have traded mostly tighter, a market source said.

Owl Rock Capital Corp.’s $500 million of 3.75% senior notes due July 22, 2025 (Baa3/BBB-/BBB-) that priced in the previous session tightened 6 bps in secondary trading.

The New York-based middle-market debt and equity asset management company priced the notes on Tuesday at 99.626 to yield 3.826%, or a spread of Treasuries plus 220 bps.

Initial price talk was in the Treasuries plus 225 bps spread area.

Secondary volume week to date includes $23.88 billion of high-grade corporate issues traded on Tuesday and $20.05 billion traded on Monday, according to Trace data.

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