Morning Commentary: High-grade bond market activity quiet; Goldman firms; Verizon active

By Cristal Cody

Tupelo, Miss., July 24 – Trading activity in the investment-grade bond market remained light early Thursday with desks thinning due to summer vacations, sources report.

The Markit CDX North American Investment Grade series 22 index was unchanged at a spread of 59 basis points.

Bonds were mostly tighter in the secondary market, a source said.

Verizon Communications Inc.’s 6.55% bonds due 2043 continue to be see trading action but remain flat to slightly better on the week, a source said.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 that priced in June traded about 3 bps tighter than issuance, according to a market source.

Verizon stable

Verizon’s 6.55% bonds due 2043 (Baa1/BBB+/A-) were mostly unchanged from Tuesday at 161 bps offered, a source said early Thursday.

The bonds were quoted in the 163 bps to 164 bps area on Monday.

Verizon sold $15 billion of the bonds at Treasuries plus 265 bps on Sept. 11, 2013.

The telecommunications company is based in New York City.

Goldman firms

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) tightened 2 bps to 132 bps offered, a market source said.

Goldman sold $2.25 billion of the notes at Treasuries plus 135 bps on June 30.

The financial services company is based in New York City.

© 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.