Morning Commentary: CVS notes improve; Morgan Stanley paper tightens; credit spreads flat

By Cristal Cody

Tupelo, Miss., July 29 – High-grade corporate bonds traded flat to mostly better early Wednesday following about $12 billion of supply on Tuesday and ahead of the outcome of the Federal Reserve’s monetary policy meeting expected later in the day.

Most market sources expect a Fed interest rate increase to occur at the September policy meeting.

CVS Health Corp.’s short-dated senior notes (Baa1/BBB+) firmed 3 basis points to 5 bps in the secondary market.

Morgan Stanley’s 2.8% senior notes due 2020 tightened 5 bps.

The Markit CDX North American Investment Grade index was unchanged early Wednesday after it closed 2 bps tighter at a spread of 71 bps in the previous session.

CVS improves

CVS Health’s 2.8% notes due 2020 traded 3 bps better at 109 bps offered, a source said.

The company sold $2.75 billion of the notes on July 13 at a spread of Treasuries plus 110 bps.

CVS Health’s 3.875% notes due 2025 firmed 5 bps to 146 bps offered in secondary trading.

The company sold $3 billion of the notes at Treasuries plus 155 bps as part of the $15 billion six-part offering of senior notes.

The pharmacy retailer is based in Scarsdale, N.Y.

Morgan Stanley tightens

Morgan Stanley’s 2.8% senior notes due 2020 improved to 160 bps offered, 5 bps better in secondary trading, a source said.

Morgan Stanley sold $2.5 billion of the notes (A3/A-/A) on June 11 at a spread of Treasuries plus 110 bps.

The financial services company is based in New York City.

© 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.