Morning Commentary: Credit Suisse firms in secondary; Credit Agricole improves; volume up

By Cristal Cody

Tupelo, Miss., March 27 – New high-grade bonds priced in March traded mostly better in the secondary market early Friday, according to sources.

Credit Suisse Group Funding (Guernsey) Ltd.’s 3.75% senior notes due 2025 brought on Monday firmed 2 basis points.

Credit Agricole SA’s 4.375% tier 2 subordinated notes due 2025 priced earlier in the month improved about 1 bp.

Investment-grade credit spreads were unchanged.

Three-month Libor yield was flat at 27 bps early Friday.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 64 bps.

Investment-grade volume was strong on Thursday with $17.53 billion of issues traded, up from $14.53 billion of volume on Wednesday, according to Trace.

Credit Suisse tightens

Credit Suisse Group Funding’s 3.75% notes due 2025 firmed 2 bps to 176 bps offered, according to a market source.

The company sold $2.5 billion of the notes (A2/ BBB+/A) on Monday at Treasuries plus 187.5 bps.

Credit Suisse Group Funding is a financial services company based in Zurich.

Credit Agricole improves

Credit Agricole’s 4.375% notes due 2025 traded about 1 bp better at 229 bps offered, a market source said.

Credit Agricole sold $1.5 billion of the notes (Baa3/BBB/A-) on March 9 at Treasuries plus 225 bps.

The retail bank is based in Paris.

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