Morning Commentary: New Comcast notes mixed in secondary market; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., July 14 – Investment-grade bonds traded mixed in the secondary market early Thursday, while credit spreads opened tighter.

Comcast Corp.’s notes (A3/A-/A-) that priced on Tuesday to fund its acquisition of DreamWorks Animation SKG, Inc. were quoted as much as 1 basis point better and 3 bps softer in secondary trading.

The Markit CDX North American Investment Grade index opened the session about 1 bp tighter at a spread of 70 bps.

The three-month Libor yield was unchanged early Thursday at 67 bps.

On Wednesday, $17.06 billion of investment-grade issues were traded, compared to $21.26 billion on Tuesday and $15.87 billion on Monday, according to Trace.

Comcast mixed

Comcast’s new notes traded mixed in the secondary market on Thursday, according to a market source.

The company’s 2.35% notes due 2027 firmed about 1 bp to 84 bps offered. Comcast sold $1.4 billion of the notes on Tuesday at 85 bps over Treasuries.

Comcast’s 3.4% notes due 2046 eased 2 bps to 122 bps offered in secondary trading. The notes priced in a $1.4 billion tranche at Treasuries plus 120 bps.

The media and technology company is based in Philadelphia.

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