Morning Commentary: Primary stays active; Citi notes modestly better; credit spreads soft

By Cristal Cody

Tupelo, Miss., Nov. 13 – After a strong showing on Thursday with about $8 billion of investment-grade bond issuance, additional primary action is slated over Friday’s session.

NStar Electric Co., doing business as Eversource Energy, is marketing $250 million of 10-year debentures.

Also, Wisconsin Electric Power Co. plans to bring an offering of debentures.

In the secondary market, Citigroup Inc.’s 4.45% subordinated notes due 2027 traded slightly better over the morning after softening on Thursday.

The Markit CDX North American Investment Grade 25 index leaked 1 basis point wider over the morning to a spread of 84 bps.

Citigroup improves

Citigroup’s 4.45% notes due 2027 traded early Friday modestly better at 225 bps offered after widening 4 bps to 230 bps bid on Thursday, a market source said.

Citigroup sold $1.5 billion of the notes (Baa3/ BBB+/A-) in a reopening on Oct. 23 at a spread of 233 bps over Treasuries. The issue originally priced in a $2 billion offering on Sept. 23 at Treasuries plus 235 bps.

The financial services company is based in New York.

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