Morning Commentary: Anheuser-Busch, Visa bonds trade mostly flat; Citigroup paper eases

By Cristal Cody

Tupelo, Miss., Feb. 12 – High-grade credit spreads opened Friday’s session tighter, while bonds were mostly flat to softer in the secondary market.

The Markit CDX North American Investment Grade index firmed 2 basis points to a spread of 123 bps early Friday.

Anheuser-Busch InBev Finance Inc.’s senior notes (A2/A-) were mostly unchanged to 1 bp softer.

Visa Inc.’s 3.15% senior notes due 2025 traded 1 bp softer.

Citigroup Inc.’s 3.7% subordinated notes due 2026 traded 4 bps weaker early Friday.

The three-month Libor yield was stable at 62 bps.

On Thursday, about $18.17 billion of investment-grade bonds were traded, up from $16.8 billion on Wednesday, according to Trace.

Anheuser-Busch eases

Anheuser-Busch’s 3.65% notes due 2026 eased 1 bp to 167 bps offered early Friday, according to a market source.

The company sold $11 billion of the notes on Jan. 13 at a spread of Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

Visa softens

Visa’s 3.15% notes due 2025 were 1 bp softer at 111 bps offered in the secondary market, a source said.

The company sold $4 billion of the bonds (A1/A+) on Dec. 9 at Treasuries plus 97 bps.

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

Citigroup weakens

Citigroup’s 3.7% notes due 2026 traded 4 bps weaker on Friday at 190 bps offered, according to a market source.

Citigroup sold $2 billion of the notes (Baa1/BBB+/A) on Jan. 5 at a spread of Treasuries plus 148 bps.

The financial services company is based in New York.

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