Lower volume forecast for week ahead; Fidelity, Westpac, Ford Motor tighten; CDX softens

By Cristal Cody

Eureka Springs, Ark., Aug. 12 – High-grade market activity stayed mostly quiet on Friday following nearly $40 billion of corporate bonds brought over the week.

About $15 billion to $20 billion of investment-grade bond issuance is expected in the week ahead, a source said.

New corporate bonds priced earlier in the week traded mostly tighter in the secondary market on Friday.

Fidelity National Information Services, Inc.’s $2.5 billion of notes (Baa3/BBB/BBB) priced in three tranches on Thursday firmed about 3 basis points to 6 bps on Friday.

The company’s 2.25% notes due 2021 traded at 104 bps bid, 102 bps offered, according to a market source. The notes priced at 110 bps over Treasuries.

The company’s 3% notes due 2026 were seen at 152 bps bid, 150 bps offered in the secondary market, compared with an offering price of 155 bps over Treasuries.

The long tranche of 4.5% notes due 2046, priced at 230 bps plus Treasuries, traded at 225 bps bid, 222 bps offered on Friday.

Westpac Banking Corp.’s $5 billion of fixed- and floating-rate notes priced in five tranches on Thursday traded about 2 bps to 4 bps tighter.

Ford Motor Credit Co. LLC’s $1 billion of three-year fixed- and floating-rate notes (Baa2/BBB/BBB) improved about 2 bps in secondary trading.

The Markit CDX North American Investment Grade index closed the day about 1 bp softer at a spread of 72 bps.

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