Morning Commentary: Rabobank improves in secondary trading; Visa softens; credit spreads firm

By Cristal Cody

Tupelo, Miss., Jan. 13 – High-grade bonds were mixed in early secondary trading on Wednesday ahead of a record benchmark bond deal expected over the day from Anheuser-Busch InBev Finance Inc.

Rabobank, New York branch’s 2.5% bonds due 2021 that priced on Monday traded 3 basis points tighter in the secondary market.

Visa Inc.’s senior notes (A1/A+) traded 2 bps softer.

The three-month Libor yield was unchanged at 62 bps.

The Markit CDX North American Investment Grade 25 index opened the session 1 bp tighter at a spread of 98 bps.

Rabobank firms

Rabobank, New York branch’s 2.5% bonds due 2021 were quoted at 94 bps offered in the secondary market, a source said.

The company priced $1.5 billion of the bonds (Aa2/A+) on Monday at Treasuries plus 97 bps.

The financial services company is based in Utrecht, the Netherlands.

Visa eases

Visa’s 3.15% notes due 2025 opened the session 2 bps softer at 94 bps bid, according to a market source.

The company sold $4 billion of the bonds on Dec. 9 at Treasuries plus 97 bps.

The retail electronic payments network operator is based in San Francisco.

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