Morning Commentary: Investment-grade bonds mixed in secondary; GE Capital, Verizon soft

By Cristal Cody

Tupelo, Miss., Jan. 14 – High-grade corporate bonds were mixed early Wednesday as credit spreads continue to leak wider, according to market sources.

General Electric Capital Corp.’s existing 3.45% notes due 2024 traded unchanged to 2 basis points softer in the secondary market, a source said.

Verizon Communications Inc.’s bonds (Baa1/BBB+/A-) were mixed with the long end weaker, according to a market source.

The Markit CDX North American Investment Grade series 23 index eased 1 bp to a spread of 72 bps on Tuesday.

GE Capital softens

General Electric Capital’s existing 3.45% notes due 2024 (A1/AA+/) were quoted flat to 2 bps wider at 92 bps offered, a market source said.

The notes were quoted a week ago at 89 bps offered.

GE Capital sold $1 billion of the notes on May 12, 2014 at a spread of Treasuries plus 85 bps.

The financial products and services subsidiary of General Electric Co. is based in Norwalk, Conn.

Verizon eases

Verizon’s 6.55% bonds due 2043 (Baa1/BBB+/A-) were quoted about 5 bps weaker at 213 bps offered, according to a market source.

The bonds were quoted a week ago at 208 bps offered.

Verizon sold $15 billion of the bonds at Treasuries plus 265 bps on Sept. 11, 2013.

The telecommunications company is based in New York City.

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