Morning Commentary: Synchrony Financial firms modestly; Verizon tightens; credit spreads ease

By Cristal Cody

Eureka Springs, Ark., Aug. 2 – Investment-grade bonds improved modestly in secondary trading early Tuesday following more than $23 billion of issuance on Monday.

Synchrony Financial’s 3.7% senior notes due 2026 that priced on Monday traded 1 basis point tighter in the secondary market.

Verizon Communications Inc.’s 2.625% senior notes due 2026 brought to market in the previous week tightened 4 bps from Monday.

The Markit CDX North American Investment Grade index opened about 1 bp softer at a spread of 76 bps.

The three-month Libor yield was unchanged over the morning at 76 bps.

On Monday, $12.98 billion of investment-grade issues were traded, according to Trace.

Synchrony Financial firms

Synchrony Financial’s 3.7% senior notes due 2026 firmed 1 bp to 224 bps offered, according to a market source.

The notes priced on Monday at a spread of Treasuries plus 225 bps.

Synchrony is a consumer financial services company based in Stamford, Conn.

Verizon tightens

Verizon’s 2.625% notes due 2026 traded 4 bps better early Tuesday at 113 bps offered, a market source said.

Verizon sold $2.25 billion of the notes (Baa1//A-) on Wednesday at Treasuries plus 115 bps.

The telecommunications company is based in New York City.

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