Midday Commentary: Investment-grade credit spreads open flat; Verizon long bonds firm

By Cristal Cody

Tupelo, Miss., March 20 - Investment-grade bond spreads opened mostly unchanged on Thursday as the market continued to digest the Federal Reserve's announcement that it will reduce its monthly bond purchases and may raise rates faster than expected, sources said.

High-grade corporate bonds closed out weaker on Wednesday following the Fed statement.

The Markit CDX North American Investment Grade series 21 Index eased 1 basis point to a spread of 64 bps in morning trading on Thursday.

In early trading on Thursday, Verizon Communications Inc.'s bonds (Baa1/BBB+/A-) tightened modestly, according to a market source.

Verizon firms

Verizon's 6.55% bonds due 2043 firmed 3 bps to 158 bps offered, a source said early Thursday.

Verizon sold $15 billion of the long bonds at Treasuries plus 265 bps in its record $49 billion eight-part offering on Sept. 11.

The telecommunications company is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.