Midday Commentary: Investment-grade bonds tighten; Time Warner Cable flat in early trade

By Cristal Cody

Tupelo, Miss., Jan. 15 - Investment-grade bonds continued to firm in early trading on Wednesday after heading out tighter in the previous session, according to market sources.

The Markit CDX North American Investment Grade series 21 index firmed 1 basis point to a spread of 65 bps on Tuesday.

In the secondary market, Time Warner Cable Inc.'s bonds (Baa2/BBB/BBB) are "for the most part unchanged today," a trader said. "Yesterday, it initially went wider but just grinded back in. No change today."

Time Warner Cable rejected Charter Communications Inc.'s offer on Monday to acquire the company for about $132.50 a share. Comcast Corp. also has been reportedly eyeing a merger with Time Warner Cable.

Time Warner Cable unchanged

Time Warner Cable's 4% notes due 2021 traded early Wednesday at 235 bps bid, 225 bps offered, a trader said. The notes were seen trading over the day on Tuesday from 225 bps to 230 bps.

The company sold $1 billion of the notes at a spread of 210 bps over Treasuries on Sept. 7, 2011.

Time Warner Cable's 4.5% senior debentures due 2042 traded Wednesday morning at 265 bps bid, 255 bps offered, the trader said. The debentures were seen on Tuesday trading between 256 bps and 265 bps over the session.

Time Warner Cable priced $1.25 billion of the debentures on Aug. 7, 2012 at a spread of Treasuries plus 183 bps.

The broadband communications company is based in New York City.

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