Morning Commentary: High-grade bonds flat to softer; Amazon, Comcast, Time Warner Cable ease

By Cristal Cody

Tupelo, Miss., Jan. 15 – High-grade corporate bonds traded flat to softer in the secondary market over the morning on Thursday ahead of primary action anticipated later in the day, sources said.

In the secondary market, Amazon.com, Inc.’s 3.8% senior notes due 2024 eased 5 basis points, according to a market source.

Comcast Corp.’s 4.75% senior notes due 2044 and Time Warner Cable Inc.’s 4.5% senior debentures due 2042 were quoted 2 bps to 5 bps weaker.

The Markit CDX North American Investment Grade series 23 index closed the previous day unchanged at a spread of 71 bps.

Amazon eases

Amazon.com’s 3.8% notes due 2024 (Baa1/AA-/) were quoted early in the day 5 bps wider at 147 bps offered, a market source said.

The company priced $1.25 billion of the notes on Dec. 2 at a spread of Treasuries plus 155 bps.

The online retailer is based in Seattle.

Comcast soft

Comcast’s 4.75% senior notes due 2044 eased 2 bps to 136 bps offered, a source said.

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

The company plans to acquire Time Warner Cable in a $45.2 billion all-stock deal.

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

Time Warner Cable weak

Time Warner Cable’s 4.5% senior debentures due 2042 (Baa2/BBB/BBB) widened about 5 bps to 164 bps offered, according to a market source.

Time Warner Cable sold $1.25 billion of the debentures on Aug. 7, 2012 at Treasuries plus 183 bps.

The broadband communications company is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.