Morning Commentary: Investment-grade market activity slows; Amazon.com, Verizon steady

By Cristal Cody

Tupelo, Miss., Dec. 22 – High-grade corporate bonds traded mostly unchanged early Monday in the secondary market as activity slows in front of the Christmas Day holiday and year-end, sources said.

Amazon.com, Inc.’s 3.8% senior notes due 2024 traded flat to 1 basis point wider, according to a market source.

Verizon Communications Inc.’s 3.5% notes due 2024 were unchanged, a source said.

The Markit CDX North American Investment Grade series 23 index closed on Friday 1 bp tighter at a spread of 64 bps.

Amazon stable

Amazon.com’s 3.8% notes due 2024 (Baa1/AA-/) were unchanged to 1 bp weaker at 141 bps offered, a market source said early Monday.

The company sold $1.25 billion of the 10-year notes at a spread of Treasuries plus 155 bps on Dec. 2.

The online retailer is based in Seattle.

Verizon flat

Verizon’s 3.5% notes due 2024 (Baa1/BBB+/A-) traded flat at 149 bps offered, according to a market source.

Verizon sold $2.5 billion of the notes at Treasuries plus 135 bps on Oct. 22.

The telecommunications company is based in New York City.

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