Morning Commentary: Shell International bonds widen in secondary as oil prices dip

By Aleesia Forni

New York, Jan. 21 – Shell International Finance BV’s bonds traded wider early Thursday as Brent crude oil prices remained below $28 per barrel on continuing concerns of a supply glut.

The company’s 2.125% notes due 2020 widened 1 basis point to 83 bps bid, according to a market source.

Shell sold $2 billion of the five-year notes (A1/AA) on May 6 at a spread of Treasuries plus 60 bps.

The company’s 4.3% notes due 2019 widened 2 bps over the day to 116 bps bid.

Shell sold $2 billion of the notes on Sept. 15, 2009 at Treasuries plus 90 bps.

The company is a subsidiary of the Hague, the Netherlands-based Royal Dutch Shell plc.

Credit spreads were also mostly wider overall at mid-morning.

The Markit CDX North American Investment Grade 25 index was 1 bp wider at a spread of 112 bps.

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