Midday commentary: High-grade spreads continue to tighten; Fifth Third, Progressive notes firm

By Aleesia Forni

Virginia Beach, April 23 - Spreads in the high-grade market continued to move tighter on the week, with sources expecting another solid session for the investment-grade bond market on Wednesday.

Recently priced deals from Fifth Third Bancorp and Progressive Corp. traded better at mid-morning, a market source said.

Fifth Third's $650 million of 1.35% three-year notes traded around 2 bps tighter compared with Tuesday's close.

The source quoted the company's 2.375% five-year notes 1 bp tighter.

In other secondary action, Progressive's recent $350 million sale of 4.35% 30-year notes were also trading better at mid-morning.

Fifth Third notes firm

Fifth Third Bancorp's $650 million of 1.35% three-year notes traded at 43 bps bid, 41 bps offered early Wednesday, a market source said.

The company's recently priced five-year notes were quoted at 63 bps bid, 63 bps offered by a market source late during Tuesday's session.

The $1.5 billion two-part sale (A3/A-/A) sold on Tuesday. The three-year notes priced with a spread of Treasuries plus 45 bps, while the five-year notes were sold at 65 bps over Treasuries.

Barclays, Fifth Third Securities Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners.

Fifth Third is a Cincinnati-based financial services company.

Progressive tightens

Progressive's $350 million issue of 4.35% 30-year senior notes (A1/A+/A) traded around 4 bps tighter on Wednesday at 83 bps bid, a trader said.

The notes sold on Tuesday with a spread of Treasuries plus 87.5 bps.

Goldman Sachs was the bookrunner.

The insurance company is based in Mayfield Village, Ohio.

© 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.