Morning Commentary: Spreads flat; light week for primary expected; Bank of America firms

By Aleesia Forni

Virginia Beach, Aug. 25 – The high-grade bond market opened a quiet session on Monday with spreads mostly unchanged to slightly tighter.

The Markit CDX North American Investment Grade series 22 index eased 2 basis points to close on Friday at a spread of 58 bps.

One source noted that bank and financial paper was mostly flat early during Monday’s session.

Bank of America Corp.’s 4% notes due 2024 (Baa2/A-/A) firmed 1 bp to 129 bps offered, a market source said.

The notes were quoted a week ago at 130 bps offered.

Bank of America sold $2.75 billion of the notes on March 27 at a spread of Treasuries plus 137 bps.

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

Sources are expecting a light week of new issuance ahead of the extended Labor Day holiday, with primary activity to resume in September.

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