Midday Commentary: Spreads widen as General Electric Capital, recent issues trade weaker

By Aleesia Forni

Virginia Beach, Va., March 26 - General Electric Capital Corp.'s recently issued notes were trading wider at Tuesday's open, one trader said, as the investment-grade secondary market saw a weaker session as of midday.

"Spreads are generally wider," the trader said, "especially recent issues."

The notes were quoted 4 basis points wider at 94 bps bid, 91 bps offered following Monday's pricing with a spread of 90 bps over Treasuries.

The $1 billion tranche of 1.625% five-year notes was sold at 99.719 to yield 1.686%.

The sale also included $400 million of five-year floating-rate notes priced at par to yield Libor plus 71 bps.

The funding arm of General Electric Co. is based in Norwalk, Conn.

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