Corporate Bonds Essentially Unchanged Today

Includes: AXP, NWSA, YUM
by: John Jansen

The secondary market for corporate bonds is dramatically unchanged today. One veteran salesman and friend of the blog noted that the market possessed a firm tone in very early trading but softened with the unexpected increase in initial jobless claims.

There is a reasonable amount of new issuance today.

American Express (NYSE:AXP) is bringing a 5 year benchmark deal. Price talk is +280 which I am told is a fair pricing. Just over one year ago American Express brought a 5 year note out on a summer Friday afternoon. Here is a link to my post on that debacle in the vortex of the credit crisis.

We have come a long way since that time.

News Corp. (NASDAQ:NWSA) is offering $400 million 11 year bonds at +225 and $600 million 30 year at + 270.

Yum Brands (NYSE:YUM) is offering a total of $500 million in 6 year bonds and 10 year bonds. Prices talk is +190 in each tranche.