Morning Commentary: Credit Suisse tightens; Wells Fargo improves; credit spreads unchanged

By Cristal Cody

Eureka Springs, Ark., April 21 – New bank and financial paper traded mostly stronger in the secondary market early Thursday.

Credit Suisse Group Funding (Guernsey) Ltd.’s senior notes due 2026 have tightened nearly 20 basis points over the last two trading sessions.

Wells Fargo & Co.’s 3% senior notes due 2026 softened on Wednesday but traded about 3 bps better early Thursday.

The Markit CDX North American Investment Grade index was unchanged at the start of the day at a spread of 73 bps.

Bond trading volume rose to $20.09 billion on Wednesday, compared to $19.72 billion on Tuesday and $14.75 billion on Monday, according to Trace.

Credit Suisse stronger

Credit Suisse Group Funding’s 4.55% notes due 2026 were quoted about 10 bps tighter at 248 bps offered early Thursday, according to a market source.

The paper was seen at 267 bps offered on Monday.

Credit Suisse Group Funding sold $2 billion of the notes (Baa3/BBB+/A) on April 13 at 280 bps over Treasuries.

The financial services company is based in Zurich.

Wells Fargo improves

Wells Fargo’s 3% notes due 2026 firmed about 3 bps to 122 bps offered, a market source said.

The company priced $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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