Morning Commentary: Ford Motor Credit, KfW to tap primary market; Ford paper softens

By Cristal Cody

Tupelo, Miss., June 7 – At least two issuers plan to tap the high-grade bond primary market on Wednesday following robust issuance the previous two sessions.

Ford Motor Credit Co. LLC is marketing fixed- and floating-rate notes via BofA Merrill Lynch, Banco Bradesco BBI SA, Citigroup Global Markets Inc., Commerz Markets LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.

KfW (Aaa/AAA) also plans to price senior global notes due Dec. 14, 2018 on Wednesday. BofA Merrill Lynch, BMO Capital Markets Corp. and Commerz Markets are the lead managers.

In the secondary market, Ford Motor Credit’s most recently priced notes, the 3.339% senior notes due March 28, 2022, traded early Wednesday slightly weaker at 101.39 from 101.48 on Tuesday, a market source said.

Ford Motor Credit sold $500 million of the notes (Baa2/BBB/BBB) as part of a $1.75 billion three-tranche offering of bonds on March 28 at par to yield a spread of Treasuries plus 138 basis points.

Looking at overall secondary market action, $17.62 billion of investment-grade bonds were traded on Tuesday, up from $12.79 billion on Monday, according to Trace.

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