Article: IBM Corp.'s bonds continue to widen after news of more belt-tightening. (Corporate Securities) (Column)

Some IBM Corp. bonds widened yesterday after Big Blue announced plans to cut 25,000 jobs, trim manufacturing capacity, and take a $6 billion charge.

Phil Kazlowski, head of corporate trading at Citicorp Securities Markets Inc., said the 7 1/4% IBM notes due Nov. 15, 2002, which were priced in October at a 55 basis points spread over comparable Treasuries, were bid at 75 and offered at 70 yesterday. Last Wednesday, the notes were bid at 60 and offered at 58, he said.

"This is as wide as IBM has ever been in the 10-year sector forever," Kazlowski said. "It's basically lined up with the middle to lower [end] of the single-A industrial market."

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