Morning Commentary: Investment-grade bonds mixed ahead of supply; Goldman stays strong

By Cristal Cody

Tupelo, Miss., Feb. 23 – High-grade corporate bonds opened the week mixed in early trading, while issuers lined up to bring deals over the day, according to market sources.

Companies including Kinder Morgan Inc., Coach, Inc., Commonwealth Edison Co. and Arrow Electronics Inc. are set to price bonds during the session.

In the secondary market, Goldman Sachs Group Inc.’s 3.5% senior notes due 2025 remain tight and traded 3 basis points better from Friday.

The Markit CDX North American Investment Grade index closed on Friday 1 bp tighter at a spread of 63 bps.

Goldman Sachs firms

Goldman Sachs’ 3.5% notes due 2025 firmed 3 bps from Friday to 126 bps offered, a market source said.

The notes traded on Thursday at 133 bps offered, a source said.

Goldman sold $1.7 billion of the notes (Baa1/A-/A) on Jan. 20 at a spread of 170 bps over Treasuries.

The financial services company is based in New York City.

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