Midday Commentary: Secondary tone falters, Precision Castparts notes trade better

By Aleesia Forni

Columbus, Ohio, Jan. 3 - The investment-grade secondary market's tone was "not quite as strong as yesterday," one trader said at midday Thursday - but issuers were still lining up to price deals during the session.

Precision Castparts Corp.'s $3 billion notes (A2/A-/), which priced in December, traded better on Thursday, one trader said.

The $1 billion of 1.25% five-year notes were at 49 basis points bid, 44 bps offered. That was 6 bps better than their original pricing spread of Treasuries plus 55 bps.

Meanwhile, the $1 billion of 2.5% notes due 2023 was at 64 bps bid, 59 bps offered, 16 bps improved from the pricing spread of 80 bps over Treasuries.

The $500 million tranche of 3.9% bonds due 2043 was quoted at 78 bps bid, 73 bps offered.

The company sold the notes with a spread of Treasuries plus 100 bps.

The metal component and industrial products manufacturer for the aerospace industry is based in Portland, Ore.

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