Morning Commentary: Stifel Financial stable; Raymond James tightens; credit spreads improve

By Cristal Cody

Eureka Springs, Ark., July 12 – New investment-grade bonds traded mostly flat to better in the secondary market as the session got underway on Tuesday.

Stifel Financial Corp.’s 4.25% senior notes due 2024 that were reopened on Monday were wrapped around issuance.

Raymond James Financial, Inc.’s 3.625% senior notes due 2026 improved 4 basis points from where the bonds traded on Monday.

The Markit CDX North American Investment Grade index opened about 1 bp tighter at a spread of 71 bps.

The three-month Libor yield was steady at 67 bps.

On Monday, $15,869,000,000 of high-grade issues traded, according to Trace. Of those, 2,171 advanced, 2,658 declined and 51 were unchanged.

Stifel unchanged

Stifel Financial’s 4.25% notes due 2024 traded flat at the 260 bps area on Tuesday, a market source said.

The company priced a $200 million add-on to the notes (/BBB-/BBB-) on Monday at a spread of 260 bps over Treasuries.

The company originally sold $300 million of the notes on July 15, 2014 at 180 bps over Treasuries.

Stifel is a St. Louis-based financial holding company for banking, securities and financial services businesses, including Stifel, Nicolaus & Co., Inc.

Raymond James firms

Raymond James’ 3.625% senior notes due 2026 were quoted at 205 bps offered early Tuesday, tighter than where the notes traded at 209 bps offered on Monday, according to a market source.

Raymond James sold $500 million of the notes (Baa2/BBB) on Thursday at a spread of 225 bps over Treasuries.

The financial services company is based in St. Petersburg, Fla.

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