Morning Commentary: Bank of America firms; Credit Suisse modestly better; Wells Fargo flat

By Cristal Cody

Eureka Springs, Ark., April 18 – Investment-grade bank and financial paper traded flat to modestly better as the session opened on Monday.

Bank of America Corp.’s senior notes (Baa1/BBB+/A) that priced on Thursday were unchanged to about 3 basis points tighter early Monday.

Credit Suisse Group Funding (Guernsey) Ltd.’s senior notes due 2026 improved about 1 bp from Friday.

Wells Fargo & Co.’s $3 billion offering of 3% senior notes due 2026 that priced on Friday were unchanged in the secondary market.

The Markit CDX North American Investment Grade index opened the session about 2 bps weaker at a spread of 82 bps.

Bank of America firms

Bank of America’s 3.5% notes due 2026 traded tighter at 170 bps offered early Monday, according to a market source.

The notes priced in a $2.5 billion tranche on Thursday at a spread of Treasuries plus 173 bps.

The bank is based in Charlotte, N.C.

Credit Suisse improves

Credit Suisse Group Funding’s 4.55% notes due 2026 tightened about 1 bp from Friday to 267 bps offered on Monday, according to a market source.

Credit Suisse Group Funding sold $2 billion of the notes (Baa3/BBB+/A) on Wednesday at 280 bps over Treasuries.

The financial services company is based in Zurich.

Wells Fargo unchanged

Wells Fargo’s 3% notes due 2026 were quoted flat at 128 bps offered, according to a market source.

The company sold $3 billion of the notes on Friday at a spread of 130 bps over Treasuries.

San Francisco-based Wells Fargo provides retail, commercial and corporate banking services.

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