Morning Commentary: High-grade bond spreads mostly unchanged; primary drought continues

By Aleesia Forni

Virginia Beach, Aug. 26 – High-grade bond spreads were largely flat on Tuesday, with little activity to speak of.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point on Tuesday to a spread of 55 bps.

Bank of America Corp.’s 4% notes due 2024 (Baa2/A-/A) were quoted unchanged at 129 bps offered, a market source said.

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.

Another quiet primary session is expected for Tuesday’s session ahead of the Labor Day holiday weekend.

So far, this week has seen no new deals enter the primary market.

Sources are expecting this primary drought to continue for the remainder of the week, with activity likely to resume in September.

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