Morning Commentary: Investment-grade primary market quiets; BB&T improves; Verizon better

By Cristal Cody

Tupelo, Miss., March 17 – Primary action looked set to be quiet in the high-grade bond market with no reported issuers in the deal pipeline early Friday.

BB&T Corp.’s 2.75% senior medium-term notes due April 1, 2022 that priced on Thursday traded modestly better in the secondary market over the morning.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 priced at the start of the week opened stronger on Friday.

Secondary trading volume totaled $20.1 billon Thursday, a little below the $21.55 billion reported on Wednesday but above the levels of $14.85 billion on Tuesday and $16.9 billion on Monday, according to Trace.

BB&T gains

BB&T’s 2.75% notes due April 1, 2022 were better in the secondary market early Friday at 100.05, a source said.

The company sold $1 billion of the five-year notes (A2/A-/A+) on Thursday at 99.813 and a spread of 75 basis points over Treasuries.

The bank and financial services company is based in Winston-Salem, N.C.

Verizon stronger

Verizon Communications’ 4.125% notes due March 16, 2027 traded up to 101.03 as the session got under way on Friday, a source said.

The notes went out on Thursday at 100.59.

Verizon sold $3.25 billion of the 10-year notes (Baa1/BBB+/A-) on Monday at 99.256 and a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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