Midday Commentary: Investment-grade spreads tight; financial paper improves in early trade

By Cristal Cody

Tupelo, Miss., April 1 - Investment-grade bond spreads remained firm at the session's open, while paper from Bank of America Corp. and Goldman Sachs Group Inc. continued to tighten in early secondary trading, according to market sources on Tuesday.

The Markit CDX North American Investment Grade series 22 index closed on Monday 1 basis point tighter at a spread of 69 bps.

Bank of America's 4% senior notes due 2024 firmed 4 bps from the previous day, a source said.

Goldman Sachs' 4% senior notes due 2024 were quoted 2 bps better in early trading, according to a market source.

Bank of America better

Bank of America's 4% notes due 2024 (Baa2/A-/A) tightened 4 bps to 125 bps bid in early trading on Tuesday, according to a market source.

Bank of America sold $2.75 billion of the notes on Thursday at 137 bps over Treasuries.

The financial services company is based in Charlotte, N.C.

Goldman firms

Goldman Sachs' 4% notes due 2024 firmed 2 bps to 132 bps offered, according to a market source early Tuesday.

Goldman sold $3 billion of the 10-year notes (Baa1/A-/A) on Feb. 26 at 137.5 bps over Treasuries.

The financial services company is based in New York City.

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