Midday Commentary: Investment-grade spreads flat in early trade; DirecTV notes tighten

By Cristal Cody

Tupelo, Miss., April 3 - High-grade bonds opened the day tight but little changed from the previous day, while bonds in the cable sector continue to trade actively, according to market sources on Thursday.

The Markit CDX North American Investment Grade series 22 index closed on Wednesday flat at a spread of 67 basis points.

DirecTV Holdings LLC's and DirecTV Financing Co.'s 4.45% senior notes due 2024 tightened more than 20 bps in the secondary market on persistent rumors of a merger with Dish Network Corp., according to a market source.

DirecTV stronger

DirecTV's 4.45% notes due 2024 tightened more than 20 bps from the previous session to 141 bps offered on Thursday, a source said.

DirecTV sold $1.25 billion of the 10-year notes (Baa2/BBB/) on March 17 at 99.63 to yield 4.496%, or a spread of Treasuries plus 180 bps.

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

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