Morning Commentary: Investment-grade bonds mixed; Credit Suisse firms; credit spreads flat

By Cristal Cody

Tupelo, Miss., July 14 – High-grade corporate bonds were mixed in early trading at the start of Tuesday’s session with most of the focus on the nuclear deal reached with Iran and other overseas events, sources said.

Credit Suisse Group Funding (Guernsey) Ltd.’s 3.75% senior notes due 2025 traded 3 basis points better.

Goldman Sachs Group Inc.’s 5.15% subordinated notes due 2045 were about 1 bp softer in the secondary market and remain wider than issuance.

The Markit CDX North American Investment Grade series 23 index was unchanged over the morning after it closed 2 bps tighter on Monday at a spread of 68 bps.

The CDX index has ranged from a low spread of 60.4 bps to a high spread of 76.4 bps over the past 12 months, according to a Barclays Bank plc report on Tuesday.

Credit Suisse improves

Credit Suisse Group Funding’s 3.75% notes due 2025 firmed 3 bps in secondary trading to 177 bps offered, a market source said.

The company sold $2.5 billion of the notes (A2/ BBB+/A) on March 23 at Treasuries plus 187.5 bps.

The financial services company is based in Zurich.

Goldman soft

Goldman Sachs’ 5.15% subordinated notes due 2045 traded 1 bp wider at 224 bps offered, according to a market source.

The subordinated notes (Baa2/BBB+/A-) were brought in a $2 billion offering on May 19 at a spread of Treasuries plus 210 bps.

The financial services company is based in New York City.

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