Morning Commentary: Devon Energy notes firm; Visa unchanged; credit spreads widen

By Cristal Cody

Tupelo, Miss., Dec. 11 – New investment-grade bonds priced over the week traded flat to tighter in the secondary market early Friday, while credit spreads opened the session 2 basis points wider.

Devon Energy Corp.’s 5.85% senior notes due 2025 traded about 4˝ bps tighter from where the bonds priced on Thursday.

Visa Inc.’s senior notes (A1/A+) were unchanged in early trading but remain better than issuance.

The Markit CDX North American Investment Grade 25 index opened wider by 2 bps at a spread of 90 bps.

The three-month Libor yield was stable at 49 bps over the morning.

Devon Energy tightens

Devon Energy’s 5.85% notes due 2025 firmed to 358 bps offered in secondary trading, according to a market source.

The company sold $850 million of the notes (Baa1/BBB+/BBB+) at Treasuries plus 362.5 bps on Thursday.

The oil, natural gas and natural gas liquids company is based in Oklahoma City.

Visa unchanged

Visa’s 3.5% notes due 2025 were unchanged in early trading at 95 bps bid, a market source said.

The notes traded on Thursday at 95 bps bid, 92 bps offered.

The company sold $4 billion of the notes on Wednesday at a spread of Treasuries plus 97 bps.

Visa’s 4.3% bonds due 2045 were stable over the morning at 129 bps bid. The bonds headed out on Thursday at 129 bps bid, 125 bps offered.

Visa sold $3.5 billion of the bonds in the offering on Wednesday at Treasuries plus 132 bps.

The retail electronic payments network operator is based in San Francisco.

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