Morning Commentary: Raymond James stronger; Sunoco Logistics firms; credit spreads unchanged

By Cristal Cody

Eureka Springs, Ark., July 11 – Investment-grade bonds traded mostly tighter early Monday as market participants focused on global events, including the potential that it may be years before the United Kingdom leaves the European Union.

Raymond James Financial, Inc.’s new 3.625% senior notes due 2026 traded 13 basis points tighter than where the notes were seen on Friday.

Sunoco Logistics Partners Operations LP’s 3.9% senior notes due 2026 firmed 4 bps in the secondary market.

The three-month Libor yield was up 1 bp to 67 bps early Monday.

The Markit CDX North American Investment Grade index opened mostly unchanged at a spread of 73 bps.

On Friday, $13.1 billion of investment-grade issues were traded, according to Trace.

Raymond James tightens

Raymond James’ 3.625% senior notes due 2026 traded better at 209 bps offered early Monday, compared to where the notes were seen on Friday at 222 bps offered, according to a market source.

Raymond James sold $500 million of the notes (Baa2/BBB) on Thursday at a spread of 225 bps over Treasuries.

The financial services company is based in St. Petersburg, Fla.

Sunoco improves

Sunoco Logistics Partners’ 3.9% notes due 2026 firmed 4 bps from Friday to 250 bps offered early Monday, according to a market source.

Sunoco Logistics sold $550 million of the notes (Baa3/BBB/BBB) on Thursday at 255 bps over Treasuries.

Philadelphia-based Sunoco transports and stores crude oil and natural gas.

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