Midday Commentary: High-grade spreads near tightest levels in seven years; Cisco notes firm

By Cristal Cody

Tupelo, Miss., Feb. 26 - Investment-grade bond spreads remained near the tightest levels since 2007 following about $17 billion of issuance in the past two sessions with up to another $10 billion expected to price over the rest of the week, according to market sources on Wednesday.

The Markit CDX North American Investment Grade series 21 index was unchanged at a spread of 64 basis points.

Cisco Systems, Inc.'s notes (/AA-/) in an $8 billion seven-part offering on Monday tightened in secondary trading, according to a market source.

Cisco firms

Cisco Systems' 1.1% notes due 2017 tightened to 28 bps offered, a market source said.

The company sold $2.4 billion of the three-year notes at 40 bps over Treasuries.

Cisco's 2.125% notes due 2019 traded better at 49 bps offered, the source said. Cisco sold $1.75 billion of the five-year notes at 60 bps over Treasuries.

The company's tranche of 3.625% notes due 2024, which priced in a $1 billion offering at Treasuries plus 90 bps, firmed to 88 bps offered, according to the market source.

San Jose, Calif.-based Cisco produces internet protocol-based networking and other communications and information technology products.

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