Morning Commentary: AbbVie bonds steady in secondary trade; Goldman Sachs paper improves

By Cristal Cody

Tupelo, Miss., May 11 – Early activity in the investment-grade bond market saw AbbVie Inc.’s senior notes (Baa1/A) trading flat to 1 basis point tighter on Monday.

Goldman Sachs Group Inc.’s paper tightened modestly.

The three-month Libor yield was unchanged at 28 bps on Monday.

The Markit CDX North American Investment Grade series 23 index closed on Friday 3 bps tighter at a spread of 63 bps.

AbbVie mostly unchanged

AbbVie’s 3.6% notes due 2025 traded about 1 bp tighter at 137 bps offered, a market source said.

The company priced $3.75 billion of the notes at Treasuries plus 145 bps on May 5.

AbbVie’s tranche of 4.7% senior notes due 2045 were flat to 1 bp tighter at 174 bps offered.

The company sold $2.7 billion of the notes at Treasuries plus 180 bps in the previous week’s offering.

The biopharmaceutical company is based in Abbott Park, Ill.

Goldman improves

Goldman Sachs’ 3.5% notes due 2025 were quoted 4 bps tighter in secondary trading at 138 bps offered, according to a market source.

The paper was flat at 140 bps bid on Friday.

The company sold an $800 million add-on to the notes (Baa1/A-/A) on March 25 at a spread of Treasuries plus 145 bps.

Goldman originally priced $1.7 billion of the notes on Jan. 20 at Treasuries plus 170 bps.

The financial services company is based in New York City.

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