Morning Commentary: High-grade credit spreads flat ahead of issuance; Citigroup, Amgen soft

By Cristal Cody

Tupelo, Miss., Nov. 17 – High-grade credit spreads opened flat on Monday ahead of heavy issuance expected over the session and week in front of the Thanksgiving Day holiday, market sources said.

High-grade companies including Duke Energy Progress Inc., Dominion Resources Inc. and Scripps Networks Interactive Inc. are expected to price bonds on Monday.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 65 basis points.

In the secondary market, Citigroup Inc.’s 4.3% subordinated notes due 2026 that priced on Thursday eased 2 bps, a market source said.

Amgen Inc.’s 3.625% senior notes due 2024 traded mostly flat but remain wider than where the notes priced in May, a market source said.

Citigroup soft

Citigroup’s 4.3% subordinated notes due 2026 eased 2 bps to 202 bps offered, a market source said.

Citigroup sold $1 billion of the notes (Baa3/BBB+/A-) at a spread of Treasuries plus 200 bps on Thursday.

The bank is based in New York.

Amgen eases

Amgen’s 3.625% senior notes due 2024 traded flat to 1 bp wider at 130 bps offered, a market source said.

The company sold $1.4 billion of the notes (Baa1/A/BBB) on May 19, 2014 at Treasuries plus 110 bps.

The biotechnology company is based in Thousand Oaks, Calif.

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