Midday Commentary: Spreads expected to rebound following wider levels; secondary takes pause

By Aleesia Forni

Virginia Beach, Va., March 20 - The widening in investment-grade bond spreads in the secondary market slowed on Wednesday, one market source said, as spreads were mostly unchanged at the session's open.

The source added that Tuesday's active pace was not seen on Wednesday.

"It's starting off kind of slow today, but I think [players] are ready to jump back in," the market source said early during the session.

The source continued that he doesn't expect the recent widening in market spreads to continue into the rest of the week.

"We might see some tightening," the source said, namely in the week's new issues.

The Markit CDX Series 20 North American Investment Grade index was 8 basis points wider than the previous Series 19 index at 90 bps on Tuesday.

© 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.