Morning Commentary: High-grade secondary trading light; Verizon active; credit spreads firm

By Cristal Cody

Tupelo, Miss., Nov. 30 – Secondary trading in the high-grade bond market was light early Monday as traders returned to their desks following the Thanksgiving Day holiday weekend.

Verizon Communications Inc.’s bonds (Baa1/BBB+/A-) were active but mostly unchanged.

The three-month Libor yield was stable at 41 basis points at the start of the session.

The Markit CDX North American Investment Grade 25 index opened about 1 bp tighter at a spread of 84 bps.

Verizon mostly unchanged

Verizon’s 3% senior notes due 2021 traded flat to about 1 bp softer at 131 bps offered, a market source said.

The company sold $1.5 billion of the notes on Oct. 22, 2014 at a spread of Treasuries plus 115 bps.

The telecommunications company is based in New York City.

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