Midday Commentary: Investment-grade credit firms; Verizon notes ease from recent tights

By Cristal Cody

Tupelo, Miss., Sept. 19 - Investment-grade bonds opened the session firmer, while Verizon Communication Inc.'s record $49 billion of bonds (Baa1/BBB+/A-) sold a week ago started to ease on Thursday, according to market sources.

The Markit CDX Series 20 North American Investment Grade index tightened 4 basis points to a spread of 69 bps on Wednesday.

In the secondary market, Verizon's 2.5% notes due 2016 traded early Thursday at 79 bps offered, a trader said.

The issue was seen on Monday at 82 bps bid, 78 bps offered. Verizon sold $4.25 billion of the notes with a spread of Treasuries plus 165 bps.

Verizon's 5.15% notes due 2023 traded in the morning session at 163 bps offered, the trader said.

On Monday, the tranche tightened to 159 bps bid, 156 bps offered. Verizon sold $11 billion of the 10-year notes with a spread of Treasuries plus 225 bps.

The telecommunications company is based in New York City.

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