Morning Commentary: New high-grade paper holds tight; ACE INA strong; Capital One firms

By Cristal Cody

Tupelo, Miss., Oct. 29 – New investment-grade bonds priced this week remained tight in secondary trading early Thursday.

ACE INA Holdings Inc.’s senior notes (A3/A/A) traded about 10 basis points to 15 bps better than issuance.

Capital One Financial Corp.’s new 4.2% subordinated notes due 2025 traded about 8 bps better than where the paper priced on Monday.

During the previous session, $18.1 billion of high-grade issues were traded, down slightly from the $18.18 billion of bonds traded on Tuesday, according to Trace.

The Markit CDX North American Investment Grade 25 index ended 1 bp tighter at a spread of 78 bps on Wednesday.

ACE INA tightens

ACE INA’s 2.3% notes due 2020 were quoted tighter at 80 bps offered in early trading on Thursday, according to a market source.

The company sold $1.3 billion of the notes on Tuesday at a spread of Treasuries plus 95 bps.

ACE INA’s tranche of 3.35% notes due 2026 firmed 2 bps to 125 bps offered in the secondary market.

ACE INA sold $1.5 billion of the bonds in Tuesday’s offering at Treasuries plus 135 bps.

The property and casualty insurance and reinsurance provider is based in Zurich, Switzerland.

Capital One firms

Capital One Financial’s 4.2% subordinated notes due 2025 tightened to 207 bps offered in early secondary trading, a market source said.

Capital One Financial sold $1.5 billion of the notes (Baa1/BBB-/BBB+) on Monday at a spread of 215 bps over Treasuries.

The financial services company is based in McLean, Va.

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