Morning Commentary: Deutsche Bank notes improve; Zimmer tightens in secondary trading

By Cristal Cody

Tupelo, Miss., March 31 – New investment-grade bonds traded mostly better in the secondary market early Tuesday as the first quarter comes to a close, sources said.

Deutsche Bank AG’s 4.5% subordinated tier 2 notes due 2025 that priced on Friday traded about 6 basis points tighter than issuance.

Zimmer Holdings Inc.’s 3.55% senior notes due 2025 were quoted 3 bps better in the secondary market.

Three-month Libor yield was unchanged at 28 bps on Tuesday.

The Markit CDX North American Investment Grade series 23 index closed on Monday 1 bp tighter at a spread of 64 bps.

Deutsche Bank stronger

Deutsche Bank’s 4.5% subordinated tier 2 notes due 2025 were quoted better at 254 bps offered, a market source said early Tuesday.

Deutsche Bank sold $1.5 billion of the notes (Ba1/BBB-/A-) on Friday at a spread of 260 bps over Treasuries.

The bank is based in Frankfurt.

Zimmer firms

Zimmer Holdings’ 3.55% notes due 2025 traded 3 bps better at 140 bps offered over the morning, according to a market source.

The company sold $2 billion of the notes (Baa3/BBB) on March 11 at Treasuries plus 145 bps.

Warsaw, Ind.-based Zimmer develops and markets reconstructive spinal, trauma and other related surgical products.

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