Morning Commentary: CBL & Associates in high-grade deal pipeline; Ford Motor slightly better

By Cristal Cody

Eureka Springs, Ark., Dec. 6 – Activity was mostly quiet early Tuesday in the high-grade bond market following Monday’s heavy deal pipeline.

Chattanooga, Tenn.-based real estate investment trust CBL & Associates LP announced plans to price an offering of 10-year senior notes via four bookrunners.

In the secondary market, Ford Motor Co.’s $2.8 billion of senior notes (Baa2//BBB) that priced in two parts on Monday traded about 1 basis point to 2 bps tighter.

Investment-grade secondary trading bond volume totaled $14.04 billion on Monday, according to Trace.

The three-month Libor yield was unchanged at 95 bps over the morning, a source said.

Ford Motor improves

Ford Motor’s 4.346% notes due 2026 firmed to 193 bps offered in secondary trading, according to a market source.

The company sold $1.5 billion of the 10-year notes on Monday at par to yield 195 bps over Treasuries.

Ford Motor’s tranche of 5.291% notes due 2046 traded modestly better at 219 bps offered in the secondary market.

The $1.3 billion 30-year tranche was priced on Monday at par with a spread of 220 bps over Treasuries.

The automaker is based in Dearborn, Mich.

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