Morning Commentary: Focus on Fed minutes; Credit Suisse paper firms; McDonald’s mixed

By Cristal Cody

Tupelo, Miss., May 20 – High-grade bonds were mixed in early secondary trading with most of the market’s focus turned toward the release of the minutes of the Federal Reserve’s April policy meeting later in the day, sources said early Wednesday.

Credit Suisse Group Funding (Guernsey) Ltd.’s 4.875% senior notes due 2045 traded 4 basis points better in the secondary market.

McDonald’s Corp.’s senior notes (A3/A-/BBB+) brought on Monday traded 1 bp weaker to 2 bps better.

The three-month Libor yield was steady at 28 bps.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 64 bps.

Credit Suisse tightens

Credit Suisse Group Funding’s 4.875% senior notes due 2045 firmed 4 bps to 180 bps offered, according to a market source.

The company sold $2 billion of the 30-year notes (A2/ BBB+/A) at Treasuries plus 187.5 bps on Monday.

The notes are guaranteed by Credit Suisse Group AG.

The financial services company is based in Zurich.

McDonald’s mixed

McDonald’s 3.375% notes due 2025 traded about 2 bps better at 113 bps offered, a market source said.

The company sold $700 million of the notes on Monday at Treasuries plus 115 bps.

McDonald’s 4.6% notes due 2045 eased about 1 bp to 156 bps offered, the source said.

The company priced $600 million of the bonds on Monday at a spread of Treasuries plus 155 bps.

McDonald’s is an Oak Brook, Ill.-based fast food chain.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.