Morning Commentary: High-grade corporate bonds soft; Barclays, Goldman paper widens

By Cristal Cody

Tupelo, Miss., Dec. 17 – High-grade corporate bonds and credit spreads remained weak early Wednesday ahead of the conclusion of the Federal Reserve’s two-day policy meeting, according to market sources.

Barclays plc’s 2.75% senior notes due 2019 that were brought in November traded 5 basis points wider than issuance, a market source said.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 widened more than 5 bps, a source said.

The Markit CDX North American Investment Grade series 23 index eased 2 bps to a spread of 76 bps on Tuesday.

Barclays eases

Barclays’ 2.75% senior notes due 2019 eased 5 bps to 125 bps offered, a market source said.

The notes (A3/A-/A) traded on Monday at 118 bps offered.

Barclays sold $2 billion of the notes at a spread of Treasuries plus 120 bps on Nov. 3.

The financial services company is based in London.

Goldman softens

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) traded more than 5 bps weaker at 155 bps offered, according to a market source.

Goldman Sachs sold $2.25 billion of the notes on June 30 at Treasuries plus 135 bps.

The financial services company is based in New York City.

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