Morning Commentary: Investment-grade bond spreads stable; Enterprise firms; JPMorgan tightens

By Cristal Cody

Tupelo, Miss., Oct. 6 – High-grade bond spreads opened modestly better on Monday after tightening in the previous week following the Labor Department’s better-than-expected September jobs report, sources said.

The Markit CDX North American Investment Grade series 22 index ended 3 basis points tighter at a spread of 59 bps on Friday.

Enterprise Products Operating LLC’s senior notes (Baa1/BBB+/) brought on Thursday remained tight early Monday, according to a market source.

Bank and financial paper opened unchanged to 2 bps better in secondary trading, a source said.

JPMorgan Chase & Co.’s 3.875% notes due 2024 traded 2 bps tighter from where the notes priced in September, according to a market source.

Enterprise tightens

Enterprise’s 4.85% notes due 2044 traded 5 bps better at 152 bps offered, a source said on Monday morning.

The company sold a $400 million add-on to the existing 4.85% bonds due 2044 at a spread of Treasuries plus 190 bps on Thursday.

Enterprise originally sold $1 billion of the notes at Treasuries plus 160 bps on March 11, 2013.

The midstream energy services provider is based in Houston.

JPMorgan improves

JPMorgan’s 3.875% notes due 2024 (A3/A/A+) were quoted early Monday at 151 bps offered, a source said.

JPMorgan sold a $3 billion add-on to the notes on Sept. 3 at Treasuries plus 153 bps. The issue originally priced in a $1.5 billion offering on Jan. 21, 2014 at Treasuries plus 112.5 bps.

The financial services company is based in New York City.

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