| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2013 > News item |
Midday Commentary: Verizon notes active as demand pushes prices 3-7 points higher
By Cristal Cody
Tupelo, Miss., Sept. 13 - Investment-grade bonds opened Friday mostly unchanged with market sources focused on economic data ahead of the two-day Federal Open Market Committee meeting in the upcoming week and potential tapering to the Federal Reserve's $85 billion monthly asset purchases, sources said.
The Markit CDX Series 20 North American Investment Grade index widened 2 basis points to a spread of 78 bps on Thursday as bonds followed the equity market and sold off, sources said.
Verizon Communications Inc.'s new eight-part offering of notes (Baa1/BBB+/A-) remain actively traded in the secondary market, according to market sources.
"Verizon bonds have already earned holders $2.54 billion of profits as insatiable demand has pushed prices 3-7 points higher, depending on the maturity," RBC Capital Markets, LLC analysts said in a note. "Rumblings are that PIMCO and Blackrock purchased more than a quarter of the $49 billion of Verizon debt issued."
In the secondary market, Verizon's 5.15% notes due 2023 rose to 105, higher than where the notes traded going out on Thursday at 103 bid, 104 offered, according to a market source.
Verizon sold $11 billion of the notes at 99.676 to yield 5.192%.
The tranche of 6.55% bonds due 2043 traded early Friday at 107, a source said. The bonds were quoted on Thursday at 106 bid, 108 offered late afternoon and 107.787 in the morning session.
Verizon sold $15 billion of the 30-year bonds at 99.883 to yield 6.559%.
The tranches were part of the New York City-based telecommunications company's record $49 billion deal priced on Wednesday.
© 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.