Morning Commentary: High-grade bond spreads steady; Verizon, AT&T mostly unchanged

By Cristal Cody

Tupelo, Miss., Oct. 27 – Investment-grade credit spreads were flat to slightly weaker early Monday, a market source said.

The Markit CDX North American Investment Grade series 23 index closed on Friday 1 basis point tighter to a spread of 65 bps.

In early secondary trading, Verizon Communications Inc.’s 4.4% senior notes due 2034 traded unchanged to 1 bp wider, according to a market source.

AT&T Inc.’s 4.35% bonds due 2045 were flat in early trading, a source said.

Verizon stable

Verizon’s 4.4% notes due 2034 (Baa1/BBB+/A-) traded flat to 1 bp wider at 149 bps offered, a source said.

Verizon sold $2.5 billion of the 20-year notes at a spread of Treasuries plus 145 bps on Wednesday.

The telecommunications company is based in New York City.

AT&T flat

AT&T’s 4.35% notes due 2045 (A3/A-/A) were quoted unchanged in early trading at 154 bps offered, a market source said.

AT&T sold $3 billion of the bonds in 2012.

The telecommunications company is based in Dallas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.