Morning Commentary: Actavis strong, Barclays paper eases in secondary; credit spreads tight

By Cristal Cody

Tupelo, Miss., March 19 – New issues from Actavis Funding SCS and Barclays plc were mixed in early secondary trading, while a round of primary activity is slated for the day, according to market sources.

Actavis’ senior notes (Baa3/BBB-/BBB-) traded 3 basis points better.

Barclays’ senior notes (A3/BBB/A) brought on March 9 widened 5 bps.

Credit spreads improved on Wednesday following the Federal Reserve’s policy meeting. The Markit CDX North American Investment Grade series 23 index firmed 3 bps to a spread of 62 bps.

Issuers including Citigroup Inc., Mizuho Financial Group, Inc., RenaissanceRe Holdings Ltd. and JPMorgan Chase & Co. are expected to tap the primary market on Thursday.

Actavis tightens

Actavis’ 3.8% notes due 2025 tightened 3 bps to 157 bps offered, a market source said.

The company sold $4 billion of the notes on March 3 at Treasuries plus 175 bps.

Actavis’ tranche of 4.75% notes due 2045 traded 3 bps better at 192 bps offered.

The bonds priced in a $2.25 billion offering on March 3 at Treasuries plus 210 bps.

Actavis is a pharmaceutical company based in Dublin.

Barclays soft

Barclays 3.625% notes due 2025 were quoted 5 bps weaker in early trading at 164 bps offered, according to a market source.

Barclays sold $2 billion of the notes on March 9 at Treasuries plus 150 bps.

The financial services company is based in London.

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