Morning Commentary: Investment-grade credit spreads ease; Time Warner firms; Goldman softens

By Cristal Cody

Tupelo, Miss., Oct. 30 – High-grade credit spreads opened about 1 basis point weaker after widening in Wednesday’s session following the Federal Reserve’s announcement that the government will end its asset purchase program by the end of October.

The Markit CDX North American Investment Grade series 23 index closed 1 bp wider at a spread of 66 bps on Wednesday.

In the secondary market, Time Warner Inc.’s 4.65% senior notes due 2044 tightened about 3 bps but continue to trade more than 20 bps wider from where the notes priced in May, a market source said.

Bank and financial paper opened the session wider, according to a market source.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 eased 2 bps and traded about 6 bps softer than where the notes priced in June, a source said.

Time Warner improves

Time Warner’s 4.65% senior notes due 2044 (Baa2/BBB/BBB+) traded about 3 bps tighter at 158 bps offered, a market source said.

Time Warner sold $600 million of the 30-year notes on May 20 at Treasuries plus 135 bps.

The media and entertainment company is based in New York City.

Goldman eases

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) eased 2 bps to 142 bps offered, according to a market source.

Goldman Sachs sold $2.25 billion of the notes on June 30 at a spread of Treasuries plus 135 bps.

The financial services company is based in New York City.

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