Morning Commentary: High-yield secondary market firms; Rite Aid gains post-earnings

By Abigail W. Adams

Portland, Me., June 23 – It was a quiet morning in the high-yield secondary space with the primary market again dormant.

While quiet, the tone continued to improve as the 10-year Treasury yield dropped 13.4 basis points to 3.02% shortly before 11 a.m. ET.

The cash bond market was up ¼ point to ½ point early in the session with ETFs in the green.

The iShares iBoxx $ High Yield Corporate Bd (HYG) share price rose 43 cents to $74.41, an increase of 0.66%, shortly before 11 a.m. ET.

The SPDR Bloomberg High Yield Bond ETF gained 61 cents to $91.99, an increase of 0.67%, shortly before 11 a.m. ET.

Topical news remained a driving force of activity in the secondary space.

Rite Aid Corp.’s 8% senior secured notes due 2026 (B3/CCC/BB-) made large gains after an earnings beat.

The 8% notes rose 1½ points to 81 in early trading.

The pharmacy retailer reported a large earnings beat and raised its revenue guidance ahead of estimates, a source said.

© 2015 Prospect News.
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