Midday Commentary: Spreads continue to trade wider in secondary; Ventas notes weaken

By Aleesia Forni

Virginia Beach, Va., March 19 - Though the secondary market's tone was seen "better than yesterday" during Tuesday's session, one market source noted that spreads continued to trade wider overall.

Issues that priced in last week's primary market were trading mixed on Tuesday, one trader said.

GATX Corp.'s two-part deal was trading tighter on Tuesday, while the recent deal from Ventas Realty LP weakened following tighter levels seen on Monday.

Ventas Reatly widens

The secondary market saw Ventas Realty's notes return to levels near new issue spread, as the notes traded 24 basis points wider compared to Monday's levels at 134 bps bid, 128 bps offered.

Ventas sold $500 million of the 2.7% seven-year senior notes at a spread of 132 bps over Treasuries on Thursday.

The real estate investment trust for housing and health-care properties is based in Chicago.

GATX notes firm

In other trading, GATX's notes due 2018 were quoted at 150 bps bid, 147 bps offered.

The notes were sold on Thursday a spread of Treasuries plus 155 bps.

The $250 million tranche of 3.9% 10-year notes, which priced at 200 bps over Treasuries, traded at 198 bps bid.

The transportation leasing services company is based in Chicago.

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