Morning Commentary: High-grade spreads improve; Noble Energy firms, Barclays steady in trade

By Cristal Cody

Tupelo, Miss., Nov. 5 – High-grade credit spreads opened nearly 1 basis point tighter ahead of strong primary activity scheduled over the day, market sources said early Wednesday.

The Markit CDX North American Investment Grade series 23 index closed on Tuesday 1 bp wider at a spread of 65 bps.

Noble Energy Inc.’s two tranches of senior notes (Baa2/BBB/) brought on Tuesday traded 4 bps to 6 bps tighter in the secondary market, a source said early Wednesday.

Barclays plc’s 2.75% senior notes due 2019 that priced on Monday traded mostly unchanged, according to a market source.

Noble Energy firms

Noble Energy’s 3.9% notes due 2024 traded about 4 bps tighter than issuance, a market source said.

The company sold $650 million of the 10-year notes on Tuesday at a spread of Treasuries plus 160 bps.

Noble Energy’s tranche of 5.05% bonds due 2044 tightened 6 bps to 199 bps offered in secondary trading, the source said.

The company priced $850 million of the bonds at Treasuries plus 205 bps.

The crude oil and natural gas exploration and production company is based in Houston.

Barclays unchanged

Barclays’ 2.75% senior notes due 2019 traded mostly flat at 115 bps offered, a market source said.

Barclays sold $2 billion of the notes (A3/A-/A) at Treasuries plus 120 bps on Monday.

The financial services company is based in London.

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