Midday Commentary: Investment-grade bond spreads weaker; financials softer; Verizon eases

By Cristal Cody

Tupelo, Miss., April 8 - Investment-grade bond spreads remained weaker early Tuesday after widening on Monday, according to market sources.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 68 bps on Monday.

Financial paper traded softer, along with bonds in the telecommunications sector, sources said.

Bank of America Corp.'s 4% senior notes due 2024 were quoted 2 bps wider over the morning.

Verizon Communications Inc.'s 6.55% bonds due 2043 eased 3 bps in early trading, a market source said.

Bank of America eases

Bank of America's 4% notes due 2024 (Baa2/A-/A) eased 2 bps to 120 bps offered on Tuesday, according to a market source.

Bank of America sold $2.75 billion of the notes on March 27 at 137 bps over Treasuries.

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

Verizon softens

Verizon's 6.55% bonds due 2043 widened 3 bps to 154 bps offered, a market source said.

The company sold $15 billion of the bonds (Baa1/BBB+/A-) at Treasuries plus 265 bps in a $49 billion eight-part offering on Sept. 11, 2013.

Verizon is a telecommunications company based in New York City.

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