Midday Commentary: Bank of America flat to better; Goldman firms; high-grade spreads tight

By Cristal Cody

Tupelo, Miss., March 31 - Financial issues continued to dominate secondary trading in the investment-grade market, with bank paper flat to slightly tighter on the final trading day of the quarter, according to sources on Monday.

Bank of America Corp.'s senior notes (Baa2/A-/A) traded unchanged to 2 basis points better in early trading, a source said.

Goldman Sachs Group Inc.'s 4% senior notes due 2024 firmed 2 bps in the morning session, according to a market source.

Investment-grade bond spreads opened the day mostly tighter, a source said.

The Markit CDX North American Investment Grade series 22 index ended Friday 1 bp better at a spread of 70 bps.

Bank of America firms

Bank of America's 2.65% notes due 2019 firmed to 88 bps bid from 86 bps bid on Friday, a source said early Monday.

The bank sold $2.5 billion of the five-year notes at Treasuries plus 97 bps on Thursday.

Bank of America's 4% notes due 2024, which priced in a $2.75 billion offering on Thursday at 137 bps over Treasuries, traded flat at 129 bps bid in the secondary market, according to the market source.

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

Goldman tightens

Goldman Sachs' 4% notes due 2024 firmed 2 bps from Friday's session to 134 bps offered early Monday, according to a market source.

Goldman sold $3 billion of the 10-year notes (Baa1/A-/A) on Feb. 26 at 137.5 bps over Treasuries.

The financial services company is based in New York City.

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