Morning Commentary: High-grade credit spreads flat; UnitedHealth bonds tighten in secondary

By Cristal Cody

Tupelo, Miss., July 22 – High-grade bond market activity was mostly quiet at the start of the day ahead of an expected busy deal calendar on Wednesday, sources said.

The Markit CDX North American Investment Grade index was flat over the morning after it closed on Tuesday 1 basis point wider at a spread of 67 bps.

The three-month Libor yield rose 1 bp to 30 bps on Wednesday.

UnitedHealth Group Inc.’s new senior notes (A3/A+/A-) that priced on Monday tightened in the secondary market.

UnitedHealth tightens

UnitedHealth’s 1.9% notes due 2018 traded better at 77 bps offered, a market source said.

The company sold $1.5 billion of the notes on Monday at Treasuries plus 85 bps.

UnitedHealth’s 2.7% notes due 2020 tightened to 93 bps offered, better than where the company priced the $1.5 billion tranche at Treasuries plus 100 bps.

UnitedHealth’s 4.75% bonds due 2045 were stronger in secondary trading at 156 bps offered.

The company sold $2 billion of the long bonds at 165 bps over Treasuries.

UnitedHealth is a diversified health company based in Minnetonka, Minn.

© 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.