Morning Commentary: High-grade primary action thins; Bank of America, Abbott mostly unchanged

By Cristal Cody

Eureka Springs, Ark., Nov. 23 – Activity in the investment-grade market is beginning to thin before the Thanksgiving Day holiday with bond markets closed on Thursday and set to close early on Friday.

New high-grade bonds were mostly flat to modestly better in the secondary market early Wednesday.

Bank of America Corp.’s 4.183% medium-term subordinated notes due 2027 that priced on Monday traded flat to 1 basis point better than issuance.

Abbott Laboratories’ 3.75% senior notes due 2026 brought to market in the previous week firmed about 1 bp.

The three-month Libor yield was steady at 92 bps early Wednesday.

Secondary trading volume rose to $18.75 billion on Tuesday from $16.49 billion on Monday, according to Trace.

Bank of America mostly flat

Bank of America’s 4.183% notes due 2027 traded at 184 bps offered, according to a market source.

Bank of America sold $2 billion of the notes (Baa3/BBB/A-) on Monday at a spread of 185 bps over Treasuries.

The financial services company is based in Charlotte, N.C.

Abbott firms modestly

Abbott Laboratories’ 3.75% notes due 2026 firmed about 1 bp to 153 bps offered in the secondary market, a source said.

Abbott Laboratories sold $3 billion of the notes (Baa3/A+) on Thursday at a spread of 155 bps over Treasuries.

The pharmaceutical health care products company is based in Abbott Park, Ill.

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