Morning Commentary: High-grade bonds remain tight; Time Warner Cable active; Apple firms

By Cristal Cody

Tupelo, Miss., July 15 – Investment-grade bond spreads remained on the tight side of a range early Tuesday, according to market sources.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point to a spread of 57 bps on Monday.

Time Warner Cable Inc.’s bonds picked up in secondary activity and traded mostly tighter, a source said.

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

In other trading, Apple Inc.’s long bonds tightened about 1 bp, according to a market source.

Time Warner Cable firms

Time Warner Cable’s 4.5% senior debentures due 2042 (Baa2/BBB/BBB) firmed about 1 bp to 129 bps offered, according to a market source.

The debentures traded slightly lower at 97.13 to yield 4.684% over the morning from where the bonds ended at 97.64 to yield 4.651% on Monday, a source said.

Time Warner Cable sold $1.25 billion of the debentures on Aug. 7, 2012 at a spread of Treasuries plus 183 bps, or 99.439 to yield 4.534%.

The broadband communications company is based in New York City.

Apple edges tighter

Apple’s 4.45% notes due 2044 (Aa1/AA /) traded about 1 bp better at 102 bps offered, a market source said.

The long bonds were quoted opening lower at 101.02 to yield 4.388%, compared to where the paper closed at 101.15 to yield 4.38% on Monday, according to a market source.

Apple sold $1 billion of the notes at Treasuries plus 100 bps, or 99.459 to yield 4.483%, on April 29.

The computer and mobile communications device company is based in Cupertino, Calif.

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