Lower volume forecast for week ahead; Fidelity, Westpac, Ford Motor Credit 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 senior notes (Baa3/BBB/BBB) priced in three tranches on Thursday firmed about 3 basis points to 6 bps 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) priced at the start of the week 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.

Fidelity tightens

Fidelity National Information Services’ 2.25% notes due 2021 traded on Friday at 104 bps bid, 102 bps offered, according to a market source.

The company sold $750 million of the notes on Thursday 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.

Fidelity National Information sold $1.25 billion of the 10-year notes in Thursday’s offering at 155 bps over Treasuries.

The long tranche of 4.5% notes due 2046, priced in a $500 million offering on Thursday at 230 bps plus Treasuries, traded at 225 bps bid, 222 bps offered on Friday.

The financial services technology company is based in Jacksonville, Fla.

Westpac Banking improves

Westpac Banking’s 2% notes due 2021 were quoted in secondary trading on Friday at 82 bps bid, 80 bps offered, a source said.

The company sold $1.5 billion of the notes on Thursday at a spread of 87.5 bps over Treasuries.

Westpac Banking’s $1 billion tranche of 2.7% notes due 2026, priced at 115 bps over Treasuries, firmed to 111 bps bid, 109 bps offered.

The Australian bank and financial services provider is based in Sydney.

Ford Motor Credit firms

Ford Motor Credit’s 1.897% notes due 2019 firmed to 103 bps bid, 100 bps offered in the secondary market, a source said on Friday.

The company sold $700 million of the notes on Monday at a spread of 105 bps over Treasuries.

Ford Motor Credit is the financing arm of Dearborn, Mich.-based Ford Motor Co.

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