Morning Commentary: High-grade primary market action quiets; General Motors Financial mixed

By Cristal Cody

Tupelo, Miss., May 12 – Activity in the investment-grade bond market stayed mostly quiet early Friday with no reported issuers in the deal pipeline.

General Motors Financial Co. Inc.’s senior notes (Ba1/BBB-/BBB-) have been active in the secondary market over the week. The company’s 2.65% notes due April 13, 2020 opened softer on Friday while the tranche of 3.95% notes due April 13, 2024 improved.

Secondary trading has been strong over the week. On Thursday, $17.9 billion of high-grade issues were traded, compared to $19.7 billion on Wednesday, $21.2 billion on Tuesday and $16.42 billion on Monday, according to Trace.

GM Financial mixed

General Motors Financial’s 2.65% notes due April 13, 2020 softened to 100.53 in secondary trading on Friday, a market source said.

The notes went out on Thursday at 100.60. The issue had a high of 101.29 on April 21.

The company sold $1 billion of the three-year notes on April 10 at 99.86 to yield 2.699%, or Treasuries plus 120 basis points.

General Motors Financial’s 3.95% notes due April 13, 2024 rose to 100.71 on Friday from where the bonds last traded in the previous session at 100.31. The notes had a high of 101.78 on May 5.

General Motors Financial sold $1.25 billion of the seven-year notes in the April 10 offering at 99.83 to yield 3.978%, or Treasuries plus 180 bps.

The notes are guaranteed by AmeriCredit Financial Services, Inc.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

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