Primary eyed; Ford in focus as fallen angel; TransDigm higher; funds lose $2.03 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 26 – While the domestic high-yield primary market remained shuttered for its third straight week, rumors of life are brewing.

Meanwhile, the secondary space continued to recover from one of the worst months in its history.

Unlike previous sessions where bids were hard to come by, there were a lack of offers on Thursday, a source said.

“People are afraid of selling today then seeing the bond move up a lot tomorrow,” the source said.

Ford Motor Co.’s senior notes were in focus on Thursday with the notes improved after S&P’s downgrade of the automaker solidified its status as a fallen angel.

Occidental Petroleum Corp.’s senior notes were mixed after the oil producer became a fully junk rated company.

TransDigm Group Inc.’s senior notes continued to improve on Thursday with the company expected to be one of the benefactors of the stimulus package.

While the secondary space has seen gains over the past few sessions, high-yield mutual and exchange-traded funds continued to have cash leave the space with outflows of $2.028 billion through Wednesday’s close, according to Refinitiv Lipper Fund Flows.

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