Midday Commentary: High-grade bond spreads unchanged; Time Warner flat; DirecTV eases

By Cristal Cody

Tupelo, Miss., May 22 - The investment-grade bond market prepared for a four-part offering from Credit Suisse AG on Thursday as spreads remained stable in morning trading, according to market sources.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point to a spread of 65 bps on Wednesday.

Time Warner Inc.'s senior notes (Baa2/BBB/BBB+) brought on Tuesday traded mostly wrapped around issuance, according to a market source.

Activity in DirecTV Holdings LLC's 4.45% notes due 2024 waned after coming in on Monday following reports the company will be acquired by AT&T Inc., according to a market source.

DirecTV's notes traded about 1 bp weaker in early trading, the source said.

Time Warner mostly flat

Time Warner's 2.1% notes due 2019 traded about 2 bps tighter from where the notes priced on Tuesday, according to a market source.

Time Warner sold $650 million of the five-year notes at Treasuries plus 60 bps.

The company's 4.65% bonds due 2044 were flat at 135 bps offered, the source said.

Time Warner sold $600 million of the bonds at Treasuries plus 135 bps in Tuesday's offering.

The media and entertainment company is based in New York.

DirecTV eases

DirecTV's 4.45% notes due 2024 (Baa2/BBB/) eased 1 bp to 119 bps bid, a source said.

The notes were flat in midday trading at 105.81, according to a market source.

DirecTV Holdings and DirecTV Financing Co. priced $1.25 billion of the notes on March 17 at 99.63 to yield 4.496%, or Treasuries plus 180 bps.

The digital entertainment company is based in El Segundo, Calif.

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