Morning Commentary: Credit Suisse eases; Devon Energy unchanged; credit spreads stable

By Cristal Cody

Tupelo, Miss., Dec. 22 – High-grade corporate bonds were mixed in light trading early Tuesday.

Secondary trading is slowing as the year winds down. About $8.1 billion of investment-grade issues were traded on Monday, according to Trace.

Credit Suisse Group Funding (Guernsey) Ltd.’s 3.125% senior notes due 2020 priced earlier in the month eased 1 basis point.

Devon Energy Corp.’s 5.85% senior notes due 2025 were unchanged.

The three-month Libor yield was flat at 59 bps.

The Markit CDX North American Investment Grade 25 index was unchanged over the morning at a spread of 95 bps.

The index has ranged from a low spread of 60.7 bps to a high spread of 96.8 bps in 2015, according to a Barclays Bank plc report on Tuesday.

Credit Suisse eases

Credit Suisse Group’s 3.125% notes due 2020 eased 1 bp to 148 bps offered, a market source said.

The company sold $2 billion of the notes (Baa2/ BBB+/A) on Dec. 7 at a spread of Treasuries plus 150 bps.

The financial services company is based in Zurich.

Devon Energy flat

Devon Energy’s 5.85% notes due 2025 opened unchanged at 441 bps offered in the secondary market, a source said.

The company sold $850 million of the notes (Baa1/BBB+/BBB+) on Dec. 10 at Treasuries plus 362.5 bps.

The oil, natural gas and natural gas liquids company is based in Oklahoma 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.