Midday Commentary: New issues mixed in early trade; Bank of America flat; Toyota firms

By Cristal Cody

Tupelo, Miss., Jan. 16 - High-grade bond spreads continued to tighten in general on Thursday, while new issues were mixed in early secondary trading, according to market sources.

The Markit CDX North American Investment Grade series 21 index firmed 2 basis points to a spread of 63 bps on Wednesday.

Bank of America Corp.'s notes that were reopened on Wednesday traded mostly flat, a market source said.

Toyota Motor Credit Corp.'s 2.1% notes due 2019 brought on Tuesday have tightened about 6 bps in the secondary market, a source said.

Bank of America flat

Bank of America's 2.6% senior notes due 2019 traded flat at 87 bps offered early Thursday, according to a market source.

The issue was reopened on Wednesday as part of a $6.15 billion four-part note offering.

Bank of America (Baa2/A-/A) sold $1.25 billion of the notes with a spread of Treasuries plus 87 bps.

The financial services company is based in Charlotte, N.C.

Toyota firms

Toyota Motor Credit's 2.1% senior notes due Jan. 17, 2019 (Aa3/AA-/) traded early Thursday at 42 bps offered, a market source said.

Toyota sold $1 billion of the notes at Treasuries plus 48 bps on Tuesday.

The U.S. financing arm of Toyota Financial Services Corp., a subsidiary of Toyota Motor Corp., is based in Torrance, Calif.

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