Morning Commentary: Travelers bonds firm; C.R. Bard improves; credit spreads leak wider

By Cristal Cody

Eureka Springs, Ark., May 5 – New high-grade bonds priced from Travelers Cos., Inc. and C.R. Bard, Inc. traded modestly better in the secondary market on Thursday.

Travelers’ 3.75% senior notes due 2046 firmed 2 basis points.

C.R. Bard’s 3% senior notes due 2026 improved 1 bp in secondary trading.

The Markit CDX North American Investment Grade series 23 index opened the day about 1 bp softer at a spread of 84 bps.

The three-month Libor yield was down 1 bp at 63 bps.

On Wednesday, $17.89 billion of high-grade bonds were traded, compared to $17.98 billion on Tuesday and $11.6 billion on Monday, according to Trace.

Travelers tightens

Travelers’ 3.75% notes due 2046 firmed 2 bps to 113 bps offered, a market source said.

The bonds (A2/A) priced on Wednesday in a $500 million tranche at Treasuries plus 115 bps.

Travelers is a holding company for commercial, property and casualty insurance subsidiaries based in New York City.

C.R. Bard firms

C.R. Bard’s 3% notes due 2026 traded 1 bp tighter at 121 bps offered in the secondary market, a source said.

The company sold $500 million of the notes (Baa1/A) on Wednesday at a spread of 122 bps over Treasuries.

C.R. Bard is a Murray Hill, N.J.-based maker of medical devices.

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