Morning Commentary: Barclays, JPMorgan paper tighten; high-grade credit spreads flat

By Cristal Cody

Tupelo, Miss., Aug. 26 – High-grade bonds were mixed in early secondary trading on Wednesday with bank and financial paper mostly tighter as the market focuses on the possibility of a September or December Fed interest rate hike.

Barclays plc’s 5.25% senior notes due 2045 that priced earlier in the month were seen about 4 basis points better in the secondary market.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 traded 5 bps tighter.

The Markit CDX North American Investment Grade index was flat over the morning after the index closed on Tuesday 1 bp tighter at a spread of 87 bps.

Barclays firms

Barclays’ 5.25% notes due 2045 firmed about 4 bps to 246 bps offered, according to a market source.

Barclays sold $1.5 billion of the bonds (Baa3/BBB/A) on Aug. 10 at a spread of Treasuries plus 235 bps.

The financial services company is based in London.

JPMorgan tightens

JPMorgan Chase’s 3.9% notes due 2025 traded 5 bps tighter in the secondary market at 159 bps offered, a market source said.

JPMorgan Chase sold $2.5 billion of the notes (A3/A/A+) on July 14 at 155 bps over Treasuries.

The financial services company is based in New York City.

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