Morning Commentary: Investment-grade spreads steady; Citigroup eases; Barclays mostly flat

By Cristal Cody

Tupelo, Miss., Nov. 19 – High-grade market participants geared up early Wednesday for another strong primary session with spreads mostly stable, according to market sources.

High-grade issuers including Consolidated Edison Co. of New York, Inc., Education Realty Trust, Inc. and Trimble Navigation Ltd. are set to tap the market over the day.

In the secondary market, bank and financial paper continued to tick wider, a market source said.

Citigroup Inc.’s 4.3% subordinated notes due 2026 that priced a week ago traded 3 basis points weaker and about 7 bps wider than issuance, a market source said.

Barclays plc’s 2.75% senior notes brought at the start of the month traded flat to 1 bp softer, a source said.

The Markit CDX North American Investment Grade series 23 index closed less than 1 bp wider on Tuesday at a spread of 67 bps.

Citigroup eases

Citigroup’s 4.3% subordinated notes due 2026 eased 3 bps to 207 bps offered, a market source said early Wednesday.

Citigroup sold $1 billion of the notes (Baa3/BBB+/A-) at a spread of Treasuries plus 200 bps on Nov. 13.

The bank is based in New York.

Barclays stable

Barclays’ 2.75% senior notes due 2019 were quoted flat to 1 bp wider at 117 bps offered in the secondary market, a source said.

Barclays priced $2 billion of the notes (A3/A-/A) at Treasuries plus 120 bps on Nov. 3.

The financial services company is based in London.

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