Morning Commentary: Kommuninvest demand strong; NWB, International Development to price

By Cristal Cody

Tupelo, Miss., Nov. 24 – Corporate supply stayed quiet at the start of Tuesday’s session, while a handful of sovereign, supranational and agency issuers plan to tap the high-grade primary market over the day.

Kommuninvest I Sverige AB (Aaa/AAA) is set to price a $1 billion offering of notes due Aug. 9, 2023 at mid-swaps plus 4 basis points on Tuesday.

Initial price talk was at the mid-swaps plus 6 bps area.

The deal has attracted indications of interest of more than $2.3 billion.

Nederlandse Waterschapsbank NV is offering $1 billion of five-year senior notes (Aaa/AAA) with initial price talk at the mid-swaps plus 12 bps area.

In addition, International Development Association (Aaa/AAA) is on deck with a dollar-denominated Rule 144A and Regulation S offering of senior notes due Dec. 3, 2030.

The notes are talked to price at the mid-swaps plus 20 bps area.

On Monday, Blackstone/GSO Secured Lending Fund was the sole reported corporate issuer in the high-grade primary market. The company priced a $300 million Rule 144A and Regulation S reopening of its 3.625% senior notes due Jan. 15, 2026 (Baa3//BBB-) in a deal upsized from $150 million.

Thin pricing action is expected over the Thanksgiving Day holiday week with up to about $5 billion of supply forecast, according to syndicate sources.

Market tone was mostly positive early Tuesday on continued headway for a Covid-19 vaccine and on the green light for president-elect Joe Biden’s formal transition to the presidency in January to proceed.

The Pimco Investment Grade Corporate Bond index rose 0.06% at $116.81.

The iShares iBoxx Investment Grade Corporate Bond ETF softened 0.02% to $137.70.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.