Morning Commentary: High-grade bond spreads stable; Bank of America firms; Goldman flat

By Cristal Cody

Tupelo, Miss., June 12 – Bank and financial paper traded flat to slightly better in the secondary market early Thursday, while credit spreads were mostly unchanged after widening in the previous session, according to market sources.

Bank of America Corp.’s 2.65% notes due 2019 tightened 3 basis points in secondary trading, according to a market source.

Goldman Sachs Group Inc.’s 3.625% notes due 2023 were unchanged, a source said.

The Markit CDX North American Investment Grade series 22 index closed on Wednesday 1 bp softer at a spread of 58 bps.

Bank of America tightens

Bank of America’s 2.65% notes due 2019 (Baa2/A-/A) tightened to 67 bps offered, according to a source early Thursday.

The notes traded at 70 bps offered in the previous session.

Bank of America sold $2.5 billion of the notes on March 27 at Treasuries plus 97 bps.

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

Goldman flat

Goldman’s 3.625% notes due 2023 (Baa1/A-/A) traded unchanged at 98 bps offered, according to a market source.

Goldman sold $2.25 billion of the notes on Jan. 16, 2013 at spread of Treasuries plus 185 bps.

The financial services company is based in New York City.

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