Midday Commentary: Investment-grade spreads little changed; cable bonds active, Comcast firms

By Cristal Cody

Tupelo, Miss., April 2 - Investment-grade bond spreads remained tight but were little changed in early trading on Wednesday, according to market sources.

The Markit CDX North American Investment Grade series 22 index closed the previous session 2 basis points tighter at a spread of 67 bps.

Bonds in the cable sector are among the most active investment-grade issues, according to a market source.

In the secondary market, Comcast Corp.'s 4.75% senior notes due 2044 firmed 1 bp in early trading, a source said.

The 4.45% senior notes due 2024 that DirecTV Holdings LLC and DirecTV Financing Co. priced on March 17 remain tighter than issuance, according to a market source.

Comcast edges tighter

Comcast's 4.75% senior notes due 2044 firmed 1 bp from the previous day to 105 bps bid, a market source said.

Comcast sold $1 billion of the bonds (A3/A-/A-) on Feb. 19 at a spread of Treasuries plus 110 bps.

The company priced the deal a week after the announcement that it will acquire Time Warner Cable Inc. in a $45.2 billion all-stock deal.

Comcast is a Philadelphia-based media, technology and entertainment company.

DirecTV better

DirecTV's 4.45% notes due 2024 traded mostly unchanged at 163 bps offered, a source said.

DirecTV sold $1.25 billion of the 10-year notes (Baa2/BBB/) on March 17 at a spread of Treasuries plus 180 bps.

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

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