High-grade credit spreads widen; outflows continue; JPMorgan, DowDuPont, Altria soften

By Cristal Cody

Tupelo, Miss., Dec. 21 – Investment-grade credit spreads ended Friday 10 basis points wider on the week.

The Markit CDX North American Investment Grade 31 index eased more than 1 basis point over the day to a spread of 90 bps.

High-grade credit spreads and bonds have softened since the Federal Reserve’s monetary policy rate hike and dovish statement on Wednesday.

Bank and financial paper was mostly weaker on Friday.

JPMorgan Chase & Co.’s 4.452% fixed-to-floating rate notes due Dec. 5, 2029 that priced in late November softened 5 bps on the day.

Energy names have traded mostly tighter over the week, and Exxon Mobil Corp.’s notes were flat to better on Friday, a source said.

In other secondary trading, DowDuPont Inc.’s 4.725% notes due Nov. 15, 2028 widened about 12 bps to trade near where the issue priced in November.

Dow Chemical Co.’s 4.8% senior notes due Nov. 30, 2028 were unchanged.

Altria Group Inc.’s senior notes (A3/BBB/BBB) have widened about 40 bps to 50 bps since the company was downgraded by S&P Global Ratings and Fitch Ratings on Thursday based on increased debt from acquisitions, according to market sources.

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