CVS bonds give back some gains after bouncing on break
Bonds issued by drugstore chain CVS Health were giving back some gains in secondary on Wednesday, but were still trading tighter than where the US$40bn nine-part offering priced a day earlier.
The US$8bn 30-year bond was being quoted at T+180bp after hitting a tight of T+178bp, but was still 15bp inside its initial pricing level of T+195bp, according to MarketAxess data.
It was a similar story for the US$9bn 10-year tranche, which was trading at T+152bp after touching a low of T+148bp and pricing at T+160bp.
CVS new bonds were the most traded securities early in the session ahead of what looks to be another volatile day as stocks sink amid heightened fears over a potential trade war.
The deal - the US high-grade market’s third biggest trade ever - saw a final order book of around US$111bn-$112bn. That is the largest order book ever seen for a US dollar corporate bond, according to IFR data.
Proceeds will help CVS finance its US$69bn acquisition of health insurer Aetna.