Midday Commentary: Investment-grade credit spreads softer in early trading

By Cristal Cody

Tupelo, Miss., Sept. 17 - Investment-grade bonds opened Tuesday slightly softer, according to market sources.

"Credit spreads are modestly wider this morning, but yesterday was [a] risk-on type of day in the corporate bond market as spreads moved tighter and riskier activity was the dominate theme in the new issue market," RBC Capital Markets, LLC analysts said in a note.

The Markit CDX Series 20 North American Investment Grade index ended Monday 2 basis points tighter at a spread of 75 bps.

"Over $5 billion of investment-grade corporate issuance launched yesterday from a smattering of issuers - including a $2 billion 5.8% 10-year subordinate offering from ING - but more notable than the actual launched deals may have been the announced deals yesterday," according to the RBC note.

Italian utility Enel SpA is reportedly marketing a dollar-denominated $1 billion hybrid bond offering with price talk in the 9.25% to 9.5% area, sources said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.