Morning Commentary: Ontario, Best Buy, Danaher, DTE, Horton, CNH, CubeSmart on deck

By Cristal Cody

Tupelo, Miss., Sept. 29 – Investment-grade supply heated up early Tuesday with corporate and sovereign, supranational and agency issuance expected over the day, according to market sources.

In SSA supply, the Province of Ontario (Aa3/A+/AA-) launched $1.25 billion of new 10-year global notes at mid-swaps plus 45 basis points. Initial price talk was at the mid-swaps plus 46 bps area.

On the corporate side, Best Buy Co., Inc. is offering $500 million of 10-year fixed-rate notes (Baa1/BBB) on Tuesday following fixed income investor calls held on Monday. Initial price talk is at the Treasuries plus 160 bps area.

Danaher Corp. (Baa1/BBB+) intends to sell new 30-year fixed-rate senior notes.

DTE Energy Co. is offering $500 million of two-year fixed-rate senior notes (Baa2/BBB/BBB), which are talked to print in the 65 bps spread area.

D.R. Horton, Inc. is marketing $500 million of seven-year senior notes (Baa2/BBB/BBB).

CNH Industrial Capital LLC intends to tap the primary market with $500 million of senior notes due Jan. 15, 2026 (Baa3/BBB/BBB-) on Tuesday. Price talk is at the Treasuries plus 185 bps area.

CubeSmart, LP plans to price $350 million of 30-year fixed-rate guaranteed senior notes (Baa2/BBB) over the day.

Golub Capital BDC, Inc. is offering $400 million of fixed-rate notes due April 15, 2024 (//BBB-). Price talk is at the mid-300 bps over Treasuries area.

Also, Svenska Handelsbanken AB (Aa1/AA-/AA) is marketing two tranches of dollar-denominated additional tier 1 contingent convertible notes on Tuesday.

Meanwhile, National Rural Utilities Cooperative Finance Corp. is expected in the primary market soon with an offering of fixed-rate green collateral trust bonds (A1/A/A+) following fixed income investor calls on Monday.

Deal volume totaled more than $5 billion on Monday, led by Pernod Ricard International Finance LLC’s $2 billion three-part sale of guaranteed senior notes (Baa1/BBB+/BBB+).

About $20 billion to $25 billion of issuance is expected by market participants this week.

Market tone was mixed at the start of the day with stocks modestly weaker ahead of the first U.S. presidential debate scheduled for the evening.

The iShares iBoxx Investment Grade Corporate Bond ETF edged up 0.19% to 135.09.

The Pimco Investment Grade Corporate Bond index softened 0.08% to 114.97.

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