Morning Commentary: Bank of America, JPMorgan paper soft in secondary; credit spreads flat

By Cristal Cody

Tupelo, Miss., Aug. 6 – Bank and financial paper traded mostly softer in the secondary investment-grade bond market, sources said early Thursday.

Bank of America Corp.’s 3.875% senior notes due 2025 eased 1 basis point.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 traded 2 bps wider.

The Markit CDX North American Investment Grade index was unchanged at a spread of 72 bps.

Bank of America eases

Bank of America’s 3.875% senior notes due 2025 eased 1 bp to 156 bps offered, a market source said.

Bank of America sold $2.5 billion of the 10-year notes (Baa1/A-/A) on July 27 at a spread of Treasuries plus 167 bps.

The financial services company is based in Charlotte, N.C.

JPMorgan weaker

JPMorgan Chase’s 3.9% notes due 2025 eased 2 bps in secondary trading to 147 bps offered, according to a market source.

JPMorgan Chase sold $2.5 billion of the notes (A3/A/A+) on July 14 at Treasuries plus 155 bps.

The financial services company is based in New York City.

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