Midday Commentary: Spreads mostly firm; Capital One notes trade better in secondary market

By Aleesia Forni

Virginia Beach, April 22 - Investment-grade credit spreads were mostly tighter to open Tuesday's session.

A trader noted that Monday's $1.5 billion new issue from Capital One Financial Corp. continued to trade better at mid-morning on Tuesday.

The company's $750 million of 2.45% five-year notes traded 4 basis points tighter at 71 bps bid, 69 bps offered.

The notes were seen at 75 bps bid in aftermarket trading late Monday following its pricing at a spread of Treasuries plus 75 bps.

The $750 million of 3.75% notes due 2024, which sold with a spread of Treasuries plus 105 bps, were quoted 1 bp tighter at 103 bps bid, 101 bps offered.

A trader had quoted the 10-year tranche of notes at 104 bps bid late Monday.

The financial services company is based in McLean, Va.

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