Morning Commentary: Investment-grade bond spreads soft; Goldman, Oracle ease; Time Warner flat

By Cristal Cody

Tupelo, Miss., Sept. 10 – High-grade bonds opened softer on Wednesday after spreads widened in the previous session, with most sectors seeing weakness, sources said.

The Markit CDX North American Investment Grade series 22 index eased 2 basis points to a spread of 59 bps on Tuesday.

Bank and financial paper traded about 1 bp to 2 bps weaker early Wednesday, a source said.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 eased 2 bps in the secondary market.

In other trading, Time Warner Inc.’s 4.65% senior notes due 2044 were active but unchanged, according to a source.

Oracle Corp.’s bonds that priced in June traded 2 bps to 3 bps wider, a source said.

Goldman Sachs eases

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) eased 2 bps to 133 bps offered, according to a market source.

Goldman Sachs sold $2.25 billion of the notes on June 30 at a spread of Treasuries plus 135 bps.

The financial services company is based in New York City.

Time Warner unchanged

Time Warner’s 4.65% senior notes due 2044 (Baa2/BBB/BBB+) traded flat at 153 bps offered in the secondary market, a market source said.

Time Warner sold $600 million of the 30-year notes on May 20 at Treasuries plus 135 bps.

The media and entertainment company is based in New York.

Oracle widens

Oracle’s 4.5% notes due 2044 (A1/A+/A+) eased 2 bps to 111 bps offered, according to a market source.

Oracle sold $1 billion of the bonds at a spread of Treasuries plus 155 bps on June 30.

The computer software and technology company is based in Redwood City, Calif.

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