Morning Commentary: High-grade bond spreads firm in early trading; Bank of America trades better

By Aleesia Forni

Virginia Beach, April 20 – High-grade bond spreads were mostly tighter early during Monday’s session.

The Markit CDX North American Investment Grade series 23 index firmed 1 basis point to a spread of 63 bps.

Meanwhile, Bank of America Corp.’s $5 billion of notes, which sold on Thursday in three tranches, traded mostly tighter, a market source said.

The bank’s $2 billion of 2.25% five-year senior notes (Baa2/A-/A), which priced at Treasuries plus 100 bps, was 2 bps tighter at 98 bps bid, 96 bps offered.

The bank’s $2.5 billion 3.95% 10-year subordinated notes (Baa3/BBB+/BBB+) traded 1 bp better at 209 bps bid, 207 bps offered.

The notes sold with a spread of Treasuries plus 210 bps.

The $500 million 4.75% 30-year subordinated notes (Baa3/BBB+/BBB+), which sold at 220 bps over Treasuries, traded at 209 bps bid, 207 bps offered.

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

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