Morning Commentary: Raymond James to reopen 2046 notes; Verizon, AT&T bonds soften

By Cristal Cody

Tupelo, Miss., May 5 – At least one bond deal is in the works in the investment-grade primary market for Friday.

Raymond James Financial Inc. announced plans to tap its 4.95% senior notes due July 15, 2046.

In other activity, bonds in the telecommunications sector weakened in secondary trading at the start of the session.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 continued to soften early Friday after trading as high as 104.60 on Tuesday.

AT&T Inc.’s 4.25% notes due March 1, 2027 traded more than 1 point weaker in the secondary market.

Secondary trading volume totaled $17.04 billon on Thursday, compared to $16.3 billion on Wednesday, $18.23 billion on Tuesday and $11.95 billion on Monday, according to Trace.

Verizon softens

Verizon Communications’ 4.125% notes due March 16, 2027 traded at 101.68 in the secondary market on Friday morning, a source said.

The notes (Baa1/BBB+/A-) headed out on Thursday at 101.82.

Verizon’s notes have softened since hitting a high of 104.60 on Tuesday.

Verizon sold $3.25 billion of the notes on March 13 at 99.256 and a spread of Treasuries plus 160 basis points.

The telecommunications company is based in New York City.

AT&T slips

AT&T’s 4.25% notes due March 1, 2027 were quoted early Friday at 101.65 in secondary trading, down from where the notes last traded on Thursday at 103.29, a market source said.

The company sold $2 billion of the notes (Baa1/BBB+/A-) on Jan. 31 at 99.94 and a spread of 180 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

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