Morning Commentary: Junk primary, secondary markets quiet; Weatherford gains continue

By Abigail W. Adams

Portland, Me., Oct. 26 – It was another quiet morning for the domestic high-yield primary market with the calendar empty heading into the final days of the month.

While the prospects for new issuance are low given the degree of uncertainty in the market, the activity in the high-grade and European high-yield market was promising, a source said.

Meanwhile, the secondary space was equally quiet early Wednesday with the cash bond market unchanged in thin volume, a source said.

Earnings remained a driver of activity in the space with results coming in mixed.

Weatherford International Ltd.’s 8 5/8% senior notes due 2030 (B3/CCC+) continued their upward momentum after earnings beat expectations.

The 8 5/8% notes jumped another 1¼ points to a 95-handle.

The notes traded as high as 95¾ early in the session but settled into a 95 to 95½ context as the session progressed.

The oilfield services company bested analyst expectations and provided strong guidance.

The notes have been on an upward surge in anticipation of positive earnings, gaining more than 5 points over the past four sessions.

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