Morning Commentary: Investment-grade spreads steady; General Motors, Bank of America firm

By Cristal Cody

Tupelo, Miss., Nov. 6 – High-grade secondary activity was mostly quiet early Thursday ahead of primary action expected from issuers including ConocoPhillips Co. and Thermo Fisher Scientific Inc., market sources said.

General Motors Co.’s 4% senior notes due 2025 brought on Tuesday tightened in secondary trading, a market source said.

Bank of America Corp.’s 4.25% subordinated notes due 2026 traded about 2 basis points better, according to a market source.

The Markit CDX North American Investment Grade series 23 index closed unchanged on Wednesday at a spread of 65 bps.

General Motors tightens

General Motors’ 4% notes due 2025 were quoted 4 bps tighter at 171 bps offered, a market source said.

The company sold 500 million of the notes (Ba1/BBB-/BB+) at Treasuries plus 175 bps on Tuesday.

The auto manufacturer is based in Detroit.

Bank of America firms

Bank of America’s 4.25% notes due 2026 (Baa3/BBB+/BBB+) tightened 2 bps to 199 bps offered, according to a market source.

Bank of America sold $2 billion of the notes on Oct. 17 at Treasuries plus 210 bps.

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

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