Morning Commentary: BPCE mostly unchanged; UBS softens; high-grade credit spreads ease

By Cristal Cody

Eureka Springs, Ark., March 31 – Investment-grade financial paper opened Thursday mostly unchanged to softer in secondary trading.

BPCE SA’s 4.875% subordinated notes due 2026 that priced on Tuesday traded mostly flat.

UBS Group Funding (Jersey) Ltd.’s new 4.125% senior notes due 2026 softened 3 basis points.

The Markit CDX North American Investment Grade index opened about 1 bp weaker at a spread of 79 bps.

On Wednesday, $18.89 billion of investment-grade issues were traded, up from $18.6 billion on Tuesday and $12.26 billion on Monday, according to Trace.

BPCE mostly flat

BPCE’s 4.875% notes due 2026 were quoted at 319 bps offered early Thursday, according to a market source.

The company sold $750 million of the notes (Baa3/BBB/A-) at 320 bps over Treasuries on Tuesday.

The financial services company is based in Paris.

UBS widens

UBS Group Funding’s 4.125% notes due 2026 traded flat to 1 bp tighter at 234 bps offered in the secondary market, a source said.

The company sold $2 billion of the notes (BBB+/A) on Tuesday at a spread of Treasuries plus 235 bps.

The firm is a subsidiary of Zurich-based financial services company UBS Group AG.

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