Morning Commentary: Visa improves; AT&T tightens; high-grade credit spreads unchanged

By Cristal Cody

Tupelo, Miss., Dec. 16 – Bonds in the high-grade market traded generally better at the start of Wednesday’s session with most attention focused on the Federal Reserve’s policy rate decision expected later in the day.

Visa Inc.’s 3.15% senior notes due 2025 were quoted about 5 basis points tighter.

AT&T Inc.’s 3.4% notes due 2025 tightened on Tuesday and continued to trade better early Wednesday.

The Markit CDX North American Investment Grade 25 index was mostly unchanged over the morning at a spread of 90 bps.

The three-month Libor yield rose 1 bp to 52 bps on Wednesday.

Visa firms

Visa’s 3.15% notes due 2025 were seen about 5 bps tighter at 95 bps offered, a market source said.

The company sold $4 billion of the notes (A1/A+) on Dec. 9 at a spread of Treasuries plus 97 bps.

The retail electronic payments network operator is based in San Francisco.

AT&T tightens

AT&T’s 3.4% notes due 2025 traded 4 bps tighter at 170 bps offered, according to a market source.

The bonds headed out on Tuesday 7 bps tighter at 168 bps bid in the secondary market.

AT&T sold $5 billion of the notes (/BBB+/A-) on April 23 at 150 bps over Treasuries.

The telecommunications company is based in Dallas.

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