Morning Commentary: High-grade financial paper firms; Bank of America, Wells Fargo tighten

By Cristal Cody

Eureka Springs, Ark., April 19 – Investment-grade bank and financial paper traded mostly stronger early Tuesday.

Bank of America Corp.’s 3.5% senior notes due 2026 were quoted 7 basis points tighter in secondary trading.

Wells Fargo & Co.’s 3% senior notes due 2026 improved 5 bps from where the paper traded on Monday.

The three-month Libor yield was unchanged over the morning at 63 bps.

On Monday, $14.75 billion of investment-grade bond issues were traded, according to Trace.

Bank of America stronger

Bank of America’s 3.5% notes due 2026 improved 7 bps from Monday to 163 bps offered, according to a market source.

The notes (Baa1/BBB+/A) priced in a $2.5 billion tranche on Thursday at a spread of Treasuries plus 173 bps.

The bank is based in Charlotte, N.C.

Wells Fargo tightens

Wells Fargo’s 3% notes due 2026 were seen 5 bps tighter in early secondary trading at 123 bps offered, a market source said.

The company sold $3 billion of the notes on Friday at a spread of 130 bps over Treasuries.

San Francisco-based Wells Fargo provides retail, commercial and corporate banking services.

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