Morning Commentary: High yield heading to strong pre-holiday finish; W/S Packaging prices, gains

By Paul A. Harris

Portland, Ore., March 29 – High-yield bonds were heading toward a strong finish to the pre-holiday week at mid-morning, according to a hedge fund manager, who added that the market was very quiet, with participation thinning ahead of Thursday's early close in the bond market.

The CDX HY30 was up 0.361 point at 105.945 bid, 106.025 offered, the manager said.

The SPDR Blmbg Barclays High Yield Bd ETF (JNK) was 0.26% higher on the morning at $35.86 per share, up 9 cents.

The freshly minted W/S Packaging Holdings Inc. 9% first-lien notes due 2023 (B3/B) were 101 bid at mid-morning.

The upsized $260 million deal (from $250 million) priced at par, at the wide end of the 8¾% to 9% price talk.

The new Coty Inc. 6½% senior notes due April 2026 (B2/BB) were also higher on the day at par ¼ bid, par ½ offered.

The $550 million issue priced at par on Wednesday, as part of a downsized and revised $1.5 billion three-part deal that also featured two tranches of euro-denominated unsecured notes. A proposed dollar-denominate tranche of 10-year senior notes was struck from the deal, which was downsized from $2 billion.

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