Morning Commentary: IBM continues to firm; Apple bonds tighten; credit spreads open softer

By Cristal Cody

Tupelo, Miss., Feb. 19 – High-grade bonds were mixed in early secondary trading on Friday with new issues brought over the week mostly tighter.

International Business Machines Corp.’s 3.45% senior notes due 2026 firmed about 5 basis points.

Apple Inc.’s long bonds that priced as part of a $12 billion nine-tranche sale traded about 3 bps better in the secondary market.

Credit spreads opened the session weaker. The Markit CDX North American Investment Grade index eased 2 bps at the start of the day to a spread of 119 bps.

High-grade secondary trading volume rose to $18.69 billion on Thursday from $18.81 billion on Wednesday, according to Trace.

IBM tightens

IBM’s 3.45% notes due 2026 were quoted early Friday about 5 bps better at 164 bps offered, according to a market source.

The company sold $1.35 billion of the notes (Aa3/A-/A+) on Tuesday at 170 bps over Treasuries.

The information technology and computer company is based in Armonk, N.Y.

Apple bonds firm

Apple’s 4.65% bonds due 2046 traded about 3 bps tighter over the morning at 194 bps offered, a market source said.

Apple sold $2.5 billion of the bonds (Aa1/AA+) on Tuesday at a spread of Treasuries plus 205 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

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