Morning Commentary: Investment-grade bonds, credit spreads mostly soft; Ventas Realty eases

By Cristal Cody

Tupelo, Miss., Jan. 13 – High-grade corporate bonds opened flat to softer on Tuesday, while primary action is expected over the session from issuers including Berkshire Hathaway Inc. and Southern California Edison Co., market sources said.

The Markit CDX North American Investment Grade series 23 index closed on Monday wider by 2 basis points at a spread of 71 bps and was seen about 0.5 bp weaker early Tuesday.

Exelon Generation Co. LLC’s new 2.95% senior notes due 2020 traded flat to 1 bp softer over the morning, a source said.

Ventas Realty, LP’s 3.5% senior notes due 2025 widened in secondary trading but remain better than where the notes priced a week ago, according to a market source.

Exelon stable

Exelon Generation’s 2.95% senior notes due 2020 were unchanged to 1 bp softer at 140 bps bid, a market source said.

The company sold $750 million of the notes (Baa2/ BBB/BBB+) at Treasuries plus 145 bps on Jan. 8.

The energy producer is a subsidiary of Chicago-based Exelon Corp.

Ventas Realty eases

Ventas Realty’s 3.5% notes due 2025 eased 4 bps to 156 bps offered, according to a market source.

Ventas Realty sold $600 million of the notes (Baa1/BBB+/BBB+) on Jan. 7 at Treasuries plus 160 bps.

The real estate investment trust for health care properties is based in Chicago.

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