A Bloomberg Z-score analysis of U.S. dollar-denominated investment grade debt on Thursday found that certain IBM and Dell International issues were trading notably tighter relative to their technology sector peers, while a number of Broadcom-related bonds were wider than typical.
IBM's 1.95% bond maturing May 15, 2030 was yielding 46.5 basis points above Treasuries. When compared to the average G-spread of industry peers, that spread was 2.71 standard deviations tighter than the three-month average, according to the Z-score measure.
Dell International's 5.3% bond due October 1, 2029 was quoted at 48.1 basis points over Treasuries. That spread represented a tightening of 2.3 standard deviations relative to the three-month peer average.
By contrast, several Broadcom and Broadcom/Cayman Finance issues appeared on the list of securities with unusually wide relative spreads. Broadcom/Cayman Finance's 3.5% bond maturing January 15, 2028 yielded 33.9 basis points more than Treasuries. The Z-score difference versus peers for that bond was 2.54 standard deviations wider than the three-month average.
Other technology-sector bonds that tightened versus peers included Qualcomm's 1.65% note due May 20, 2032, together with multiple Salesforce bonds maturing in 2031 and 2033. Meanwhile, multiple Broadcom-branded bonds were among the names that widened most relative to peers, with reported Z-scores ranging from 2.1 to 2.5 standard deviations above their three-month averages.
The Bloomberg Z-score framework used for this snapshot compares current G-spreads to a three-month history for issuer peers within the technology sector, flagging deviations in standard deviation units. The data show dispersion within technology investment grade debt on the day of the analysis, with individual issues moving in opposite directions relative to their sector cohorts.
These observations are limited to the specific bonds and metrics reported by the Z-score analysis and do not attempt to explain underlying corporate fundamentals, funding strategies, or other drivers beyond the scope of the reported spread and Z-score values.
Key points
- IBM's 2030 bond was 2.71 standard deviations tighter versus a three-month peer average, yielding 46.5 basis points over Treasuries.
- Dell International's 2029 bond tightened by 2.3 standard deviations relative to peers, yielding 48.1 basis points over Treasuries.
- Broadcom and Broadcom/Cayman Finance issues showed unusually wide spreads, with one noted bond 2.54 standard deviations wider and yielding 33.9 basis points over Treasuries; several Broadcom bonds had Z-scores between 2.1 and 2.5.
Risks and uncertainties
- The analysis is a snapshot based on Z-score deviations from a three-month peer average and does not indicate whether the observed spread moves will persist.
- Findings are limited to the specific reported bonds and their relative spreads; they do not encompass broader credit fundamentals or company-specific balance sheet changes.