Morning Commentary: Investment-grade credit spreads steady; Wells Fargo widens; AT&T eases

By Cristal Cody

Tupelo, Miss., Oct. 15 – High-grade credit spreads opened unchanged to slightly wider while secondary bond trading remains light, market sources said early Wednesday.

The Markit CDX North American Investment Grade series 23 index eased 1 basis point to a spread of 73 bps on Tuesday.

Wells Fargo & Co.’s 3.3% senior notes due 2024 have widened more than 10 bps from where the paper priced in September, a source said.

AT&T Inc.’s 4.8% bonds due 2044 traded about 2 bps weaker, according to a market source.

Wells Fargo paper weakens

Wells Fargo’s 3.3% notes due 2024 (A2/A+/AA-) were quoted over the morning at 103 bps offered, a source said.

The bank sold $2.25 billion of the notes on Sept. 2 at a spread of Treasuries plus 92 bps.

Wells Fargo is based in San Francisco.

AT&T bonds ease

AT&T’s 4.8% notes due 2044 (A3/A-/A) eased about 2 bps to 166 bps offered, a source said.

AT&T sold $2 billion of the 30-year notes on June 3 at a spread of Treasuries plus 140 bps.

The telecommunications company is based in Dallas.

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