Morning Commentary: Oracle bonds improve in secondary trading; AT&T soft; credit spreads ease

By Cristal Cody

Tupelo, Miss., Sept. 22 – High-grade corporate bonds remained mixed in secondary trading early Tuesday, and high-grade credit spreads opened the session slightly wider.

Oracle Corp.’s senior notes (A1/AA-/A+) traded modestly tighter over the morning.

AT&T Inc.’s bonds (/BBB+/A-) softened about 1 basis point in secondary trading.

The Markit CDX North American Investment Grade 25 index eased to a spread of 83 bps at the start of the day. The index rolled to a new series on Monday and closed 3 bps wider at a spread of 81 bps.

Oracle tightens

Oracle’s 4.125% bonds due 2045 were seen 1 bp to 2 bps tighter over the morning at 146 bps offered, a market source said.

Oracle sold $2 billion of the bonds on April 28 at a spread of Treasuries plus 145 bps.

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

AT&T softer

AT&T’s 3.4% notes due 2025 eased about 1 bp early Tuesday to 174 bps offered, according to a market source.

The company sold $5 billion of the notes on April 23 at 150 bps over Treasuries.

The telecommunications company is based in Dallas.

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