Morning Commentary: Fidelis Insurance, Ford Foundation offer bonds; TD Bank firms

By Cristal Cody

Tupelo, Miss., June 11 – Investment-grade supply is beginning to thin as expected after the record-breaking volume seen since March, according to market sources on Thursday.

A couple of reported issuers offered investment-grade bonds over the morning.

Fidelis Insurance Holdings Ltd. (BBB) is expected to bring a Rule 144A dollar-denominated offering of 10-year senior notes to the market following fixed income investor calls on Wednesday.

Ford Foundation announced it plans to price $1 billion of taxable social bonds (Aaa/AAA), making it the first non-profit foundation in history to offer social bonds in the U.S. taxable corporate bond market.

Meanwhile, the Federal Home Loan Bank System priced $1 billion of two-year Global notes early Thursday after bringing a $500 million reopening of its 0.5% Global notes due April 14, 2025 to the primary market on Wednesday.

Investment-grade issuers have priced more than $25 billion of bonds week to date.

About $30 billion to $40 billion of issuance was expected for the week.

New issues priced this week are mixed in the secondary market, a source said.

Toronto-Dominion Bank’s $2.75 billion of senior medium-term notes (Aa3/A) sold in two tranches on Wednesday improved about 4 basis points to 5 bps in secondary trading.

The bank’s $1.75 billion of 1.75% notes due June 12, 2023 firmed about 4 bps.

The notes were priced at a spread of 58 bps over Treasuries, on the tight side of guidance in the 60 bps area and better than initial talk in the Treasuries plus 80 bps area.

TD Bank’s $1 billion tranche of 1.15% notes due June 12, 2025 tightened about 5 bps from issuance.

The notes priced with a Treasuries plus 83 bps spread, on the tight side of guidance in the 85 bps area and improved from initial talk in the 100 bps area.

Overall high-grade corporate secondary trading volume fell to $25.45 billion on Wednesday from $27.07 billion on Tuesday and $27.34 billion on Monday, according to Trace data.

© 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.