Morning Commentary: Credit Suisse Group tightens; UBS Group eases; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., April 14 – Investment-grade financial paper traded mixed at the start of Thursday’s market session.

Credit Suisse Group Funding (Guernsey) Ltd.’s senior notes (Baa3/BBB+/A) that priced on Wednesday traded about 3 basis points to 5 bps tighter than issuance in the secondary market over the morning.

UBS Group Funding (Jersey) Ltd.’s 4.125% senior notes due 2026 eased 3 bps.

The Markit CDX North American Investment Grade index tightened 1 bp to a spread of 78 bps at the start of the day.

The three-month Libor yield was unchanged on Thursday at 63 bps.

On Wednesday, $17.85 billion of high-grade bond issues were traded, compared to $17.16 billion on Tuesday and $13.4 billion on Monday, according to Trace.

Credit Suisse firms

Credit Suisse Group Funding’s 3.45% notes due 2021 traded early Thursday at 220 bps offered, according to a market source.

The notes priced on Wednesday in a $1.5 billion tranche at a spread of Treasuries plus 225 bps.

The company’s 4.55% notes due 2026 firmed to 277 bps offered in the secondary market.

Credit Suisse Group Funding sold $2 billion of the 10-year notes in Wednesday’s offering at Treasuries plus 280 bps.

The financial services company is based in Zurich.

UBS softens

UBS Group Funding’s 4.125% notes due 2026 eased 3 bps to 236 bps offered in early secondary trading, according to a market source.

The company sold $2 billion of the notes (BBB+/A) on March 29 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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