Morning Commentary: General Motors Financial improves; ACE bonds ease; credit spreads stable

By Cristal Cody

Tupelo, Miss., Nov. 20 – General Motors Financial Co., Inc.’s $1 billion tranche of 3.7% senior notes due 2020 that priced on Thursday traded about 1 basis point tighter in the secondary market early Friday.

ACE INA Holdings Inc.’s long bonds brought late in October were trading about 4 bps softer at the start of the session but remain better than issuance.

The Markit CDX North American Investment Grade 25 index was mostly unchanged at a spread of 84 bps.

The three-month Libor yield was stable over the morning at 37 bps.

GM Financial firms

General Motors Financial’s 3.7% notes due 2020 traded early Friday about 1 bp better at 204 bps offered, according to a market source.

The company sold $1 billion of the notes (Ba1/BBB-/BBB-) on Thursday at a spread of Treasuries plus 205 bps.

General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.

ACE softens

ACE INA Holdings’ 4.35% senior notes due 2045 were quoted about 4 bps weaker in the 137 bps area in secondary trading, according to a market source.

The company sold $1.5 billion of the notes (A3/A/A) on Oct. 27 at Treasuries plus 150 bps.

The notes are fully and unconditionally guaranteed by parent company Ace Ltd., a Zurich, Switzerland-based property and casualty insurance and reinsurance provider.

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