Morning Commentary: High-grade bonds mixed; CVS firms; Bank of America, Verizon mostly flat

By Cristal Cody

Tupelo, Miss., Aug. 8 – Investment-grade bonds were mostly mixed over the morning on Friday following about $10 billion of issuance in Thursday’s session, according to market sources.

The Markit CDX North American Investment Grade series 22 index ended the previous day 1 basis point weaker at a spread of 67 bps.

In the secondary market, CVS Caremark Corp.’s 3.375% senior notes due 2024 that priced on Thursday traded about 1 bp tighter, a market source said.

Bank of America Corp.’s 4% notes due 2024 were unchanged to 1 bp softer, according to a market source.

Verizon Communications Inc.’s 4.15% senior notes due 2024 were flat on the week, a market source said.

CVS better

CVS Caremark’s 3.375% notes due 2024 (Baa1/BBB+/) were quoted 1 bp tighter at 104 bps bid, a market source said early Friday.

CVS sold $650 million of the 10-year notes on Thursday at a spread of Treasuries plus 105 bps.

The pharmacy retailer is based in Scarsdale, N.Y.

Bank of America mostly flat

Bank of America’s 4% notes due 2024 (Baa2/A-/A) traded flat to 1 bp wider at 129 bps offered, a source said.

The Charlotte, N.C.-based financial services company sold $2.75 billion of the notes on March 27 at a spread of Treasuries plus 137 bps.

Verizon unchanged

Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) were unchanged at 124 bps offered, a source said.

Verizon sold $1.25 billion of the 10-year notes on March 10 at 140 bps plus Treasuries.

The telecommunications company is based in New York City.

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