Primary continues to be quiet; Momentive notes see more movement; funds gain $672 million

By Paul Deckelman and Paul A. Harris

New York, Aug. 28 – The recent status quo prevailed again on Thursday in the primary market. No new deals priced for a ninth consecutive session, and no prospective issues joined the forward calendar.

Overall, traders saw only low activity levels on this, the last full trading session of the week as well as the month of August.

The junk bond market will technically be open for business on Friday, which in theory will be a regular full day. Participants nonetheless expect a short, uneventful and only lightly staffed session heading into the three-day Labor Day holiday break in the United States.

A primary market that has been put on hold and a secondary market recently running at the lowest idling speed are both expected to heat up once that holiday break has come and gone.

In the meanwhile, though, things remained fairly quiet on Thursday.

Momentive Performance Materials Inc.’s first-lien notes were again the most actively traded credit in Junkbondland, firming a little bit further from the levels they reached on Wednesday.

Statistical market performance indicators remained mixed on Thursday for a third straight session.

Another indicator – the flow of cash in to or out of high-yield mutual funds and exchange-traded funds, considered a good barometer of overall junk market liquidity trends – saw its third straight weekly positive number after four straight weeks of large losses before that.

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