Morning Commentary: High-yield market tone improves; primary quiet amid geopolitical uncertainty

By Abigail W. Adams

Portland, Me., May 30 – The domestic and European high-yield primary market remained quiet on Wednesday as markets firmed amid continued uncertainty surrounding political tensions in Italy and Spain.

Potential issuers remain on the sidelines where they wait to see how markets respond to political developments in Europe.

“Volatility is a bit elevated at the moment,” a market source said. “Next week is going to be quite telling.”

While the market did feel better on Wednesday, potential issuers are still hesitant to come forward, a market source said. “We need a couple more days. It’s too early to draw any conclusions,” the source said.

The secondary market was slightly improved early Wednesday with on-the-run names up generically about ¼ point, a market source said. However, with no new paper entering the space, the market was quiet.

Most accounts were occupied with end of the month clean-up, the source said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.