However, the market has improved significantly from its worst levels in mid-May. Ford Motor Credit on Tuesday sold $1.5bn of three-year paper at 330 basis points over Treasury rates. It increased the size from the original $1bn as a result of demand.
The deal was a "drive-by", meaning it was announced and priced on the same day. This usually implies an issuer is taking advantage of market conditions. In the secondary market on Tuesday, Ford 2008 notes were trading at about 320bp over Treasuries, down from a peak of 514bp in mid-May, according to MarketAxess.
The article also mentions the Qwest $1.25 bn junk offering being placed tomorrow. It is the biggest junk issue since the auto downgrades.
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