Morning Commentary: Investment-grade bond spreads ease; Bank of America trades better

By Aleesia Forni

Virginia Beach, Aug. 28 – High-grade bond spreads were slightly wider early during Thursday’s session.

The Markit CDX North American Investment Grade series 22 index closed Wednesday’s session at a spread of 55 basis points.

Meanwhile, Bank of America Corp.’s bonds traded better at mid-morning.

The bank’s $1 billion of 1.7% senior notes due 2017 were quoted 5 bps better on Thursday at 70 bps bid, 68 bps offered

Pricing was at a spread of Treasuries plus 80 bps.

Bank of America’s 4.2% subordinated notes due 2024 firmed 4 bps to 164 bps bid, 163 bps offered.

The notes priced at 180 bps over Treasuries.

Both tranches were sold as part of a $4.5 billion three-part offering priced on Aug. 21.

Bank of America is a financial services company based in Charlotte, N.C.

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