Morning Commentary: High-grade bonds mixed ahead of supply; Credit Suisse firms; AbbVie soft

By Cristal Cody

Tupelo, Miss., May 19 – New investment-grade paper was mixed in secondary trading ahead of an expected heavy supply of new bonds over the session, sources said early Tuesday.

Credit Suisse Group Funding (Guernsey) Ltd.’s 4.875% senior notes due 2045 tightened 3.5 basis points from where the paper priced on Monday.

AbbVie Inc.’s senior notes (Baa1/A) traded mostly weaker but remain better than issuance.

The three-month Libor yield was stable at 28 bps.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 63 bps.

The CDX index has a 12-month high spread of 76.4 bps and a 12-month low spread of 59.4 bps, according to a Barclays Bank plc report on Tuesday.

Credit Suisse better

Credit Suisse Group Funding’s 4.875% senior notes due 2045 were quoted tighter at 184 bps offered, a source said.

The company sold $2 billion of the 30-year notes (A2/ BBB+/A) at Treasuries plus 187.5 bps on Monday.

The notes are guaranteed by Credit Suisse Group AG.

The financial services company is based in Zurich.

AbbVie eases

AbbVie’s 3.6% notes due 2025 eased 4 bps to 138 bps offered, according to a market source.

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

AbbVie’s 4.7% senior notes due 2045 traded 3 bps weaker at 168 bps offered.

The company priced $2.7 billion of the notes at Treasuries plus 180 bps in the May 5 offering.

AbbVie is a biopharmaceutical company based in Abbott Park, Ill.

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