Morning Commentary: New Bank of America notes tighten; Cisco firms; secondary trading strong

By Cristal Cody

Eureka Springs, Ark., March 1 – Bank of America Corp.’s $2 billion of 4.4% medium-term subordinated notes due 2026 that sold on Monday traded 5 basis points better in the secondary market early Tuesday.

Investment-grade bonds were mostly tighter at the start of the session.

Cisco Systems, Inc.’s 2.2% senior notes due 2021 that priced in February were quoted trading 3 bps better.

The three-month Libor yield was unchanged over the morning at 64 bps.

On Monday, secondary trading volume was strong with $18.3 billion of high-grade issues traded, according to Trace.

Bank of America tightens

Bank of America’s 4.45% subordinated notes due 2026 firmed 5 bps to 265 bps offered in the secondary market, a source said.

Bank of America sold $2 billion of the series L notes on Monday at a spread of 270 bps over Treasuries.

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

Cisco active

Cisco Systems’ 2.2% notes due 2021 traded 3 bps tighter from Monday at 76 bps offered, according to a market source.

The company sold $2.5 billion of the five-year notes (A1/AA-) as part of a $7 billion six-tranche offering on Feb. 22 at 100 bps over Treasuries.

San Jose, Calif.-based Cisco produces internet protocol-based networking and other communications and information technology products.

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