Morning Commentary: Bond spreads improve; Time Warner bonds mixed following add-on

By Aleesia Forni

New York, Nov. 18 – Credit spreads were inching tighter early during Wednesday’s session ahead of the release of the Federal Reserve’s October meeting minutes.

The Markit CDX North American Investment Grade 25 index was 1 basis point tighter at a spread of 82 basis points.

Time Warner Inc.’s bonds were mixed following its upsized $900 million sale that priced in new and reopened tranches on Tuesday.

Meantime, the primary market was largely quiet to open the session away from new deal announcements from Horace Mann Educators Corp. and Federal Home Loan Banks.

Time Warner mixed

Time Warner’s 4.85% debentures (Baa2/BBB/BBB+) due 2045 were 1 bp wider early Wednesday compared to Tuesday’s close at 200 bps bid, 197 bps offered, a market source said.

The company sold a $300 million tap of the issue on Tuesday at Treasuries plus 200 bps. The original $600 million of the debentures priced in a May 28 offering at Treasuries plus 195 bps.

Its $600 million tranche of 3.875% notes due Jan. 15, 2026, which sold at 162.5 bps over Treasuries on Tuesday, was quoted at 161 bps offered.

Time Warner is a media company based in New York.

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