Morning Commentary: Wells Fargo’s new paper mostly unchanged; BNP notes widen; CDX soft

By Cristal Cody

Tupelo, Miss., Sept. 23 – Wells Fargo & Co.’s new 3.55% senior holding company notes due 2025 were mostly unchanged from issuance in secondary trading early Wednesday.

BNP Paribas SA’s 4.375% tier 2 subordinated notes due 2025 traded about 7 basis points wider than where the paper priced on Monday.

Meanwhile, the three-month Libor yield rose 1 bp to 33 bps over the morning.

The Markit CDX North American Investment Grade 25 index was 1 bp softer at the start of the day at a spread of 84 bps.

Wells Fargo steady

Wells Fargo’s 3.55% notes due 2025 that priced on Monday traded mostly unchanged at 137 bps offered, according to a market source.

Wells Fargo sold $2.55 billion of the notes (A2/A+/AA-) at a spread of 137.5 bps over Treasuries.

The bank is based in San Francisco.

BNP Paribas eases

BNP Paribas’ 4.375% notes due 2025 widened to 237 bps offered in secondary trading, a source said.

BNP Paribas sold $1 billion of the notes (Baa2/BBB/A) on Monday at 230 bps over Treasuries.

The financial services company is based in Paris.

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