Morning Commentary: Investment-grade spreads steady at open; Verizon mixed; bank paper eases

By Cristal Cody

Tupelo, Miss., Oct. 23 – High-grade credit spreads opened on Thursday mostly unchanged after widening in the previous session, according to market sources.

The Markit CDX North American Investment Grade series 23 index closed on Wednesday 2 basis points weaker at a spread of 68 bps.

Verizon Communications Inc.’s older bonds (Baa1/BBB+/A-) were active in early trading following the company’s $6.5 billion three-part issuance of senior notes on Wednesday, a source said.

Bank and financial paper traded 3 bps to 5 bps weaker, according to a market source.

JPMorgan Chase & Co.’s 3.875% notes due 2024 were quoted 3 bps wider in secondary trading.

Verizon mixed

Verizon’s 4.15% notes due 2024 traded 1 bp tighter from a week ago and were quoted at 133 bps offered in early trading, a source said.

Verizon sold $1.25 billion of the 10-year notes on March 10 at Treasuries plus 140 bps.

The company’s 6.55% bonds due 2043 eased 3 bps from early Wednesday to 171 bps offered, a source said.

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.

JPMorgan eases

JPMorgan’s 3.875% notes due 2024 (A3/A/A+) eased 3 bps to 163 bps offered, according to a market source.

JPMorgan brought a $3 billion add-on of the notes on Sept. 3 at a spread of 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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