Morning Commentary: Lloyds Banking, American Airlines, Ford Credit to price; FedEx bonds firm

By Cristal Cody

Eureka Springs, Ark., Jan. 4 – High-grade primary action is expected to remain active over Wednesday’s session with Lloyds Banking Group plc, American Airlines, Inc. and Ford Motor Credit Co. LLC among the issuers preparing deals.

In the secondary market, FedEx Corp.’s $1.2 billion of notes (Baa2/BBB) that priced in two tranches on Tuesday traded about 1 basis point to 3 bps tighter.

Investment-grade secondary trading volume totaled $12.8 billion in the previous session, according to Trace.

The three-month Libor yield was stable at 100 bps early Wednesday, according to a market source.

FedEx firms

FedEx’s 3.3% notes due 2027 were seen at 89 bps offered in secondary trading, according to a market source.

The $450 million tranche priced on Tuesday at a spread of 90 bps over Treasuries.

FedEx’s 4.4% notes due 2047, brought to market on Tuesday in a $750 million tranche at a spread of 140 bps over Treasuries, firmed to 137 bps offered in the secondary market.

FedEx is a Memphis, Tenn.-based package and freight transportation company.

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