Morning Commentary: Investment-grade corporate bonds steady; Microsoft, Oracle notes firm

By Cristal Cody

Tupelo, Miss., Feb. 17 – High-grade bonds opened mostly better early Tuesday following the three-day holiday weekend and with primary activity expected over the day.

Microsoft Corp.’s bonds (Aaa/AAA/) that priced a week ago continue to trade tighter in the secondary market.

Trading also picked up in Oracle Corp.’s 3.4% notes due 2024, which tightened about 2 basis points.

The Markit CDX North American Investment Grade index was unchanged at spread of 65 bps.

Ryder System Inc. and AmerisourceBergen Corp. are among the issuers set to bring deals during the session.

Microsoft firms

Microsoft’s 3.75% notes due 2045 traded flat to 1 bp tighter at 119 bps offered, a market source said.

Microsoft sold $1.75 billion of the bonds on Feb. 9 at Treasuries plus 123 bps.

The company’s tranche of 4% bonds due 2055 were quoted 3 bps tighter at 143 bps offered, according to the market source.

Microsoft sold $2.25 billion of the bonds in the Feb. 9 offering at 153 bps over Treasuries.

The computer software company is based in Redmond, Wash.

Oracle improves

Oracle’s 3.4% notes due 2024 (A1/A+/A+) firmed 2 bps to 71 bps offered, according to a market source.

Oracle priced $2 billion of the notes on June 30 at 90 bps over Treasuries.

The computer software and technology company is based in Redwood City, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.