Midday Commentary: Market gears up for busy week; Ford eyes deal; IBM notes mixed in secondary

By Aleesia Forni

Virginia Beach, Va., May 6 - Monday's high-grade secondary market kicked off on a positive note, according to one market source, who said the market could see "quite a busy week."

In primary activity, Ford Motor Credit Co. LLC is among the companies planning to come to market on Monday.

Ford is set set to sell notes in fixed- and floating-rate tranches, according to a market source.

Meanwhile, Thursday's deal from International Business Machines Corp. traded mixed in the secondary market, while a trader quoted both tranches of Loews Corp.'s recent offering tighter.

Ford plans deal

Ford is planning to hit Monday's market with a two-part issue of fixed- and floating-rate notes, according to a market source.

A trader said the offering includes a three-year note being talked in the high 140 basis points to 150 bps area over Treasuries.

The company was last in the market with a three-year issue of notes in 2012, which the source saw trading in the area of 140 bps bid early during Monday's session.

IBM mixed in secondary

In other trading activity, a source at another desk saw the recent deal from International Business Machines trading mixed compared to levels seen late Friday.

The company sold the $2.25 billion of bonds in two maturities on Thursday.

The $1 billion of 0.45% three-year notes, which priced at a spread of Treasuries plus 25 bps, traded 2 bps wider at 25 bps bid, 20 bps offered.

The $1.25 billion tranche of 1.625% seven-year notes was quoted 1 bp better at 63 bps bid, 56 bps offered early during Monday's trading.

IBM sold the notes at a spread of 67 bps over Treasuries.

The information technology and computer company is based in Armonk, N.Y.

Loews trades tighter

In another recent deal, the $500 million tranche of 2.625% 10-year notes from Loews, which sold at a spread of Treasuries plus 105 bps on Thursday, traded 2 bps better on Monday.

A trader quoted the notes at 100 bps bid, 95 bps offered early during the day's trading.

Meanwhile, the $500 million of 4.125% 30-year bonds traded 1 bp better at 131 bps bid, 128 bps offered.

The company sold the notes at a spread of 135 bps over Treasuries.

Loews is a New York City-based holding company for diversified subsidiaries including insurance, hotels, oil drilling and pipeline transportation.

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