Ford Motor Co.'s loan-only credit default swaps continued to tighten last week even after it reported a fourth quarter loss of $5.67 billion and a year loss of $12.7 billion, the worst in the company's history. The LCDS tightened about 10 to 12 basis points on Thursday to the low 170s, mostly on the back of unsecured CDS tightening 20 basis points, a dealer said.
It was trading in the low 180s last Wednesday, with a lot of retail and inter-dealer activity. "This has become far and away the most active LCDS name," one trader said. "So on busy days, it gets really busy."
The LCDS just continues to creep higher. It was trading around 185-195 a week ago (CIN, 1/22) and was trading around 232-237 following the break (12/18).
Its $7 billion term loan "B" was trading around 101.384-101.670 last Wednesday, according to Markit. It had been trading around 101.075-101.400 a week before (1/22). A spokeswoman declined comment.