Midday Commentary: High-grade spreads remain tight; Citi improves; Time Warner Cable flat

By Cristal Cody

Tupelo, Miss., March 6 - The investment-grade market geared up for another heavy day of issuance following more than $30 billion of deals priced in the first three sessions of the week, according to informed sources.

Spreads remain tight, a source said.

The Markit CDX North American Investment Grade series 21 index firmed 1 basis point to a spread of 62 bps on Wednesday.

In the secondary market, Citigroup Inc.'s 1.35% notes due 2017 traded slightly better, according to a market source.

Time Warner Cable Inc.'s notes were flat in secondary trading, a source said.

Citi improves

Citigroup's 1.35% notes due 2017 traded at the start of the day at 66 bps offered, a market source said early Thursday.

Citigroup sold $1 billion of the notes (Baa2/A-/A) on Tuesday at a spread of Treasuries plus 68 bps.

The financial services company is based in New York.

Time Warner Cable flat

Time Warner Cable's 4.125% notes due 2021 (Baa2/BBB/BBB) were unchanged at 70 bps bid, according to an informed source.

Time Warner Cable sold $700 million of the notes at Treasuries plus 155 bps in 2010.

The seven-year notes traded as wide as the 215 bps area in February but came in after Time Warner Cable announced that it will be acquired by Comcast Corp. in a $45.2 billion all-stock transaction.

New York City-based Time Warner Cable is a broadband communications company.

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