Morning Commentary: Investment-grade bond spreads mostly flat; CBS mixed; Viacom eases

By Cristal Cody

Tupelo, Miss., Aug. 13 – Investment-grade bond spreads were mostly unchanged early Wednesday as traders digested July retail sales data and other economic reports, according to market sources.

The Markit CDX North American Investment Grade series 22 index closed the previous session flat at a spread of 63 basis points.

In the secondary market, CBS Corp.’s senior notes (Baa2/BBB/BBB) that priced on Monday traded mostly unchanged from issuance, a market source said.

Viacom Inc.’s senior debentures brought in March are active but about 2 bps softer in secondary trading, according to a market source.

CBS mostly flat

The 2.3% notes due 2019 that CBS priced on Monday traded slightly softer at 76 bps offered, according to a market source.

CBS sold $600 million of the five-year notes at a spread of Treasuries plus 75 bps.

The company’s 3.7% notes due 2024 were quoted 1 bp tighter at 129 bps offered.

CBS priced $600 million of the 10-year notes at Treasuries plus 130 bps in Monday’s offering.

The broadcasting company is based in New York.

Viacom eases

Viacom’s 5.25% debentures due 2044 (Baa2/BBB/BBB+) were quoted 2 bps softer at 172 bps offered, according to a market source.

The debentures have eased 10 bps since the company priced the notes on March 4.

Viacom sold $550 million of the debentures at Treasuries plus 162 bps.

The entertainment company is based in New York City.

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