Morning Commentary: High-grade credit spreads soft; Amazon, Verizon firm; JPMorgan steady

By Cristal Cody

Tupelo, Miss., Dec. 8 – Investment-grade credit spreads remained soft early Monday after leaking wider on Friday following a strong November jobs report, according to market sources.

The Markit CDX North American Investment Grade series 23 index eased 1 basis point to a spread of 63 bps on Friday.

In the secondary market, Amazon.com, Inc.’s 4.95% senior notes due 2044 that were brought to market in the previous week tightened about 5 bps, a source said.

Verizon Communications Inc.’s long bonds firmed 3 bps, according to a market source.

JPMorgan Chase & Co.’s 3.875% notes due 2024 traded mostly unchanged, a market source said.

Amazon improves

Amazon.com’s 4.95% notes due 2044 (Baa1/AA-/) traded about 5 bps better at 192 bps offered, a market source said.

The company sold $1.5 billion of the bonds at Treasuries plus 205 bps on Dec. 2.

The online retailer is based in Seattle.

Verizon firms

Verizon’s 6.55% bonds due 2043 (Baa1/BBB+/A-) firmed 3 bps to 181 bps offered in secondary trading, a source said.

Verizon sold $15 billion of the bonds at a spread of Treasuries plus 265 bps on Sept. 11, 2013.

The telecommunications company is based in New York City.

JPMorgan stable

J.P. Morgan’s 3.875% notes due 2024 (A3/A/A+) traded unchanged to 1 bp tighter at 162 bps offered, according to a market source.

JPMorgan sold a $3 billion add-on to the issue on Sept. 3 at Treasuries plus 153 bps. The notes originally priced in a $1.5 billion offering on Jan. 21, 2014 at Treasuries plus 112.5 bps.

The financial services company is based in New York City.

© 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.