Morning Commentary: High-grade spreads stable; Verizon eases; Bank of America mostly flat

By Cristal Cody

Tupelo, Miss., Nov. 4 – High-grade bonds were mixed in early, quiet trading in front of heavier expected primary activity later in the election-day session, market sources said.

The Markit CDX North American Investment Grade series 23 index ended unchanged on Monday at a spread of 64 basis points.

Verizon Communications Inc.’s 4.4% senior notes due 2034 eased 5 bps in secondary trading, according to a market source.

Bank of America Corp.’s 4.2% notes due 2024 traded flat to 1 bp softer, a source said.

Verizon widens

Verizon’s 4.4% notes due 2034 (Baa1/BBB+/A-) eased 5 bps to 154 bps offered, a market source said.

Verizon sold $2.5 billion of the 20-year notes at a spread of Treasuries plus 145 bps on Oct. 22.

The telecommunications company is based in New York City.

Bank of America mostly flat

Bank of America’s 4.2% notes due 2024 traded flat to 1 bp weaker at 178 bps offered, according to a market source.

Bank of America sold $3 billion of the notes on Aug. 21 at 180 bps over Treasuries.

The financial services company is based in Charlotte, N.C.

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