Morning Commentary: Investment-grade bonds mixed; Entergy Arkansas firms; Citigroup eases

By Cristal Cody

Tupelo, Miss., Jan. 6 – New high-grade bonds that priced on Tuesday in the year’s first supply were mixed in secondary trading early Wednesday.

Entergy Arkansas Inc.’s 3.5% first mortgage bonds due 2026 traded 6 basis points better than issuance.

Citigroup Inc.’s 3.7% senior notes due 2026 traded about 1 bp weaker than where the issue priced.

The three-month Libor yield was unchanged at 61 bps early Wednesday.

Entergy Arkansas stronger

Entergy Arkansas’ 3.5% bonds due 2026 firmed 6 bps in secondary trading to 124 bps offered, according to a market source.

The company sold $325 million of the first mortgage bonds (A3/A-) on Tuesday at a spread of 130 bps over Treasuries.

Entergy Arkansas is a Little Rock, Ark.-based energy provider.

Citi edges wider

Citigroup’s 3.7% notes due 2026 that priced on Tuesday traded softer at 149 bps offered in the secondary market, a source said.

Citigroup sold $2 billion of the 10-year notes (Baa1/BBB+/A) at Treasuries plus 148 bps.

The financial services company is based in New York.

© 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.