Morning Commentary: Investment-grade spreads firm; American Express notes ease

By Aleesia Forni

Virginia Beach, Sept. 22 – High-grade corporate bond spreads were mostly tighter overall early during Monday’s trading session compared to Friday’s close.

The Markit CDX North American Investment Grade series 22 index was unchanged at a spread of 56 basis points.

American Express Credit Corp.’s recently priced $700 million issue of 1.55% three-year notes traded 2 bps wider on Monday.

The notes were quoted at 49 bps bid at mid-morning.

The issuer sold the notes on Thursday with a spread of Treasuries plus 50 bps.

American Express Credit’s $1 billion offering also included $300 million of three-year floaters priced at par to yield Libor plus 30 bps.

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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