Corporate bonds are firm at the open as investors genuflect to the strong signals emanating from the equity market. One salesman noted that most sectors are 1 basis point to 2 basis points wider.
There are no new issues on the burner at the present time.
Just to make the point of the extent of the rally in credit this year, I offer a couple of bonds as examples.
Long time readers will recall that I chronicled ad nauseam the plight of an American Express 5year note which was issued in August 2008 as the financial markets spiraled into a near collapse. When the bond was issued ( and I do not have the level at which it came) it priced over 100 basis points cheap to outstanding Amex paper.
At the height of the crisis last winter that bond traded regularly in the 600s and 7800s versus benchmark Treasuries. The widest quote I ever observed was 825/775.
Five year Amex paper trades in the mid 150s today.
Second example. last week Harley Davidson sold $ 500 million 5 years at T+ 363 basis points.
In February this year they sold $ 600 million 5 year notes with a 15 percent coupon.