Midday Commentary: Ford, Federal Realty notes tighten in secondary; Xcel slightly weaker

By Aleesia Forni

Virginia Beach, Va., May 7 - The high-grade secondary market saw recent deals from Ford Motor Credit Co. LLC and Federal Realty Investment Trust trade tighter early during Tuesday's session, one trader said.

Ford, which came to market with a $1.5 billion crossover sale of notes in two parts on Monday, saw its fixed-rate notes firm 10 basis points.

Monday's issuance from Federal Realty also firmed on the day, as the trader quoted the $275 million of 10-year notes 1 bp better.

In other trading, Xcel Energy Inc.'s $450 million deal was quoted 1 bp wider compared to levels seen late Monday.

Meanwhile, the Markit CDX North American Investment Grade index was 3 bps tighter at a spread of 68 bps.

Ford notes firm

Ford Motor Credit's $1 billion tranche of 1.7% three-year notes traded 10 bps tighter early during Tuesday's session at 130 bps bid, 128 bps offered, a trader said.

The notes were sold at a spread of Treasuries plus 140 bps on Monday.

The sale also included $500 million of three-year floating-rate notes priced at par to yield Libor plus 125 bps.

The company is based in Dearborn, Mich.

Federal Realty trades better

In other secondary market action, Monday's new issue from Federal Realty Investment Trust traded 1 bp better at 111 bps bid, 108 bps offered.

The company priced the slightly upsized $275 million issue of 2.75% 10-year senior notes to yield Treasuries plus 112 bps.

The real estate investment trust for retail and mixed-use buildings is based in Rockville, Md.

Xcel prices tight

Xcel Energy's $450 million of 0.75% three-year notes, which priced at Treasuries plus 42 bps, traded 1 bp weaker compared to levels seen late Monday.

A trader quoted the notes at 40 bpd bid, 38 bps offered.

The Minneapolis-based public utility holding company priced the issue on Monday.

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