But the spread moves were generally modest, as investors eyed the many caveats that might shelter producers from immediate operational strains. The five-year debt protection costs on the debt of Altria Group (MO) widened more than six basis points to indications of 33.5 bps, according to Markit. But trading levels remain well below where Altria initially placed the bonds in September 2016—at T+150—when it inked $2 billion of notes to repay high-coupon debt. RAI 4.45% notes due 2025 also widened six basis points on the news, trading at T+99, according to MarketAxess. Perhaps most notably, any new enforcement policy would not affect any current requirements for cigarettes and smokeless tobacco, “only the newly-regulated tobacco products such as cigars and e-cigarettes,” the FDA stated today.

Source: Forbes July 28, 2017 17:37 UTC