Midday Commentary: High-grade bonds tighter at open; Goldman paper better; Verizon firms

By Cristal Cody

Tupelo, Miss., March 26 - Investment-grade bond spreads opened tighter on Wednesday as stocks rallied, a market source said.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point to a spread of 71 bps on Tuesday.

Goldman Sachs Group Inc.'s 4% notes due 2024 were slightly better but mostly range-bound in secondary trading, a source said.

Verizon Communications Inc.'s long bonds (Baa1/BBB+/A-) traded tighter over the morning, according to a market source.

Goldman better

Goldman's 4% notes due 2024 traded about 1 bp better from the previous session at 129 bps offered, a source said early Wednesday.

Goldman sold $3 billion of the 10-year notes (Baa1/A-/A) on Feb. 26 at a spread of 137.5 bps over Treasuries.

The financial services company is based in New York City.

Verizon tightens

Verizon's 6.55% bonds due 2043 tightened 3 bps to 156 bps offered on Wednesday, according to a market source.

Verizon sold $15 billion of the bonds at Treasuries plus 265 bps as part of the $49 billion eight-part offering the company brought 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.