Morning Commentary: High-grade spreads weaker; primary sees CBS, AIG announce offerings

By Aleesia Forni

Virginia Beach, July 7 – Spreads in the high-grade secondary market continued to leak wider at Tuesday’s open, while the primary market saw its first signs of activity since June 26.

The Markit CDX North American Investment Grade series 23 index was flat with a spread of 71 basis points early during the session.

Bank of America Corp.’s 4% notes due 2025 traded around 1 bp tighter, while Citigroup Inc.’s 3.3% senior notes due 2025 were flat.

On the primary side, CBS Corp. and American International Group Inc. were among the names announcing plans to price new deals during the session.

Bank of America firms

Bank of America’s 4% notes due 2025 firmed about 1 bp to 193 bps bid, according to a market source.

Bank of America sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 16 at Treasuries plus 225 bps.

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

Citigroup unchanged

Citigroup’s 3.3% senior notes due 2025 were unchanged at 139 bps bid, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa2/A-/A) on April 22 at Treasuries plus 135 bps.

The investment bank is based in New York.

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