Morning Commentary: Spreads continue to tighten; AmEx Credit bonds flat in early trading

By Aleesia Forni

Virginia Beach, Sept. 19 – Investment-grade bond spreads continued to trade tighter in the early part of Friday’s session.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point to a spread of 56 bps on Friday, 6 bps tighter compared to Monday’s close.

American Express Credit Corp.’s recently priced $700 million of 1.55% three-year notes traded unchanged from Thursday’s close.

The notes were quoted at 48 bps bid following Thursday’s pricing at a spread of Treasuries plus 50 bps. They had tightened 2 bps in initial trading.

The $1 billion offering also included $300 million of three-year floaters priced at par to yield Libor plus 30 basis points.

Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the bookrunners.

American Express is a New York-based financial services company.

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