Investment-grade primary market action quiet; credit spreads firm; bonds mixed; BB&T improves

By Cristal Cody

Tupelo, Miss., March 17 – High-grade primary action stayed muted on Friday following the sale of more than $9 billion of bonds in the previous session.

The Markit CDX North American Investment Grade index tightened about 1 basis point on Friday to close at a spread of 61 bps.

In the secondary market, new bonds priced over the week were mixed on Friday.

BB&T Corp.’s 2.75% senior medium-term notes due April 1, 2022 priced on Thursday traded modestly better in the secondary market.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 priced at the start of the week headed out softer than where the notes were seen at the start of the day.

BB&T gains

BB&T’s 2.75% notes due April 1, 2022 improved in secondary trading, going out on Friday at 100.13 from where the notes were seen over the morning at 100.05, a source said.

The company sold $1 billion of the five-year notes (A2/A-/A+) on Thursday at 99.813 and a spread of 75 bps over Treasuries.

The bank and financial services company is based in Winston-Salem, N.C.

Verizon softens

Verizon Communications’ 4.125% notes due March 16, 2027 closed better at 100.86 from the previous session but softer on the day, according to a market source.

The 4.125% notes due March 16, 2027 traded up to 101.03 early Friday after last trading on Thursday at 100.59.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on Monday at 99.256 and a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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