Secondary heavy in light volume; VistaJet sinks lower; Gap under pressure; Carvana reverses

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 22 – The high-yield new issue market sat idle on Friday, which marked another brutal day for risk assets with investors again unnerved by Federal Reserve chair Jerome Powell’s confirmation of an aggressive rate hike schedule during a Thursday speech.

The high-yield secondary space fell ½ to 5/8 point with the ICE BofAML US High Yield index’s year-to-date returns breaking below negative 7%.

However, trading activity in the space remained thin.

While there was ETF selling amid continued outflows, opportunistic buyers were entering the space with real money accounts circulating offers-wanted-in-competition lists, a source said.

VistaJet’s (XO Management Holding, Inc./VistaJet Malta Finance plc) 7 7/8% senior notes due 2027 (Caa1/B-/BB-), one of two deals to price over the past week, sank further below their discounted issue price.

Outside of recent issues, Gap, Inc.’s capital structure was under pressure after the clothing retailer lowered its forward guidance and announced the departure of Old Navy’s chief executive officer.

After leading losses during Thursday’s session, Carvana Co.’s senior notes were bouncing off their lows in high-volume activity as the market awaits news of a new offering from the used car e-commerce company.

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