Morning Commentary: State Street edges tighter; CVS Health unchanged; credit spreads soften

By Cristal Cody

Eureka Springs, Ark., May 17 – Investment-grade bonds traded mostly flat to modestly better in the secondary market on Tuesday.

State Street Corp.’s senior notes (A1/A/AA-) priced in two parts on Monday traded about 1 basis point tighter than issuance.

CVS Health Corp.’s $3.5 billion of senior notes (Baa1/BBB+) brought in two tranches on Monday were wrapped around issuance.

The Markit CDX North American Investment Grade index softened about 1 bp as the session opened to a spread of 82 bps.

On Monday, $11.67 billion of investment-grade issues were traded, according to Trace.

State Street’s 2.65% notes due 2026 firmed about 1 bp in the secondary market to 91 bps offered, according to a market source.

The company sold $750 million of the 10-year notes on Monday at a spread of 92 bps over Treasuries.

The financial holding company is based in Boston.

CVS Health unchanged

CVS Health’s 2.125% notes due 2021 were unchanged from issuance in the secondary market at 92 bps offered, according to a market source.

The company sold $1.75 billion of the five-year notes at a spread of Treasuries plus 92 bps on Monday.

CVS Health’s $1.75 billion tranche of 2.875% notes due 2026 also were wrapped around issuance in secondary trading. The company sold the 10-year notes on Monday at a spread of 122 bps over Treasuries.

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

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