Midday Commentary: High-grade bonds steady in early trade; Time Warner Cable active

By Cristal Cody

Tupelo, Miss., Dec. 12 - Spreads held steady early Thursday after the investment-grade bond market widened in the previous session, according to informed sources.

The Markit CDX North American Investment Grade series 21 index eased 2 basis points on Wednesday to a spread of 70 bps.

"Credit spreads have stabilized this morning after moving wider yesterday on a day when no assets class was spared from the sell-off," RBC Capital Markets, LLC analysts said in a note on Thursday.

Traders were busy digesting economic reports that included retail sales data, initial jobless claims and import prices released over the morning.

The Labor Department reported that initial unemployment claims rose 68,000 to 368,000 in the week ended Dec. 7, higher than the 320,000 forecast.

In the secondary market, Time Warner Cable Inc.'s notes continue to be among the most actively traded investment-grade bonds, sources said.

Time Warner Cable's 4% notes due 2021 (Baa2/BBB/BBB) traded in the 90 to 91 area early Thursday, a market source said.

The New York City-based broadband communications company sold $1 billion of the notes on Sept. 7, 2011 at 99.109 to yield 4.11%.

Time Warner Cable's bonds have cheapened over the last month on speculation that both Comcast Corp. and Charter Communications Inc. are considering a takeover of the company, sources said.

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