Morning Commentary: High-grade bonds mostly soft; Time Warner Cable tight; JPMorgan eases

By Cristal Cody

Tupelo, Miss., May 29 – High-grade bonds traded mostly softer early Friday after leaking wider on Thursday, with the exception of Time Warner Cable Inc.’s bonds, according to market sources.

Time Warner Cable’s bonds have tightened more than 60 basis points since Tuesday after Charter Communications, Inc. announced it will acquire the company for $78.7 billion in cash and stock.

Time Warner Cable’s 6.75% debentures due 2039 were quoted about 35 bps tighter over the morning.

JPMorgan Chase & Co.’s new 4.95% subordinated bonds due 2045 eased 3 bps in the secondary market.

The three-month Libor yield eased 1 bp to 29 bps on Friday.

The Markit CDX North American Investment Grade series 23 index closed 1 bp wider at a spread of 64 bps on Thursday.

Time Warner Cable tight

Time Warner Cable’s 6.75% debentures due 2039 (Baa2/BBB/BBB) traded about 35 bps tighter at 296 bps offered, according to a market source.

The company sold $1.5 billion of the debentures on June 24, 2009 at 260 bps over Treasuries.

The broadband communications company is based in New York City.

JPMorgan widens

JPMorgan Chase’s 4.95% subordinated bonds due 2045 eased 3 bps to 197 bps offered, a market source said.

The company sold $1.75 billion of the 30-year bonds (Baa1/A-/A) on May 21 at a spread of Treasuries plus 200 bps.

The financial services company is based in New York City.

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