Morning Commentary: Citigroup improves; JPMorgan tightens; credit spreads flat

By Cristal Cody

Eureka Springs, Ark., July 21 – Investment-grade bank and financial paper traded mostly tighter in the secondary market early Thursday.

Citigroup Inc.’s 4.125% subordinated notes due 2028 firmed about 3 basis points from the previous session.

JPMorgan Chase & Co.’s 2.95% senior notes due 2026 that priced a week ago tightened 5 bps.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 70 bps.

The three-month Libor yield was steady over the morning at 70 bps.

High-grade secondary trading volume hit $19.6 billion on Wednesday, up from $18.01 billion on Tuesday and $7.1 billion on Monday, according to Trace.

Citigroup firms

Citigroup’s 4.125% subordinated notes due 2028 traded about 3 bps tighter from Wednesday at 252 bps offered on Thursday, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa3/BBB/A-) on Monday at a spread of 258 bps over Treasuries.

The financial services company is based in New York.

JPMorgan tightens

JPMorgan Chase’s 2.95% notes due 2026 improved 5 bps from the previous day to 136 bps offered in secondary trading, according to a market source.

JPMorgan Chase sold $3 billion of the notes (A3/A-A+) on July 14 at a spread of 145 bps over Treasuries.

The financial services company is based in New York City.

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