Entegris flat on break; fear descends; returns hit negative 13%; HY funds out $5.7 billion

By Abigail W. Adams

Portland, Me., June 16 – Thursday marked a brutal day for risk assets with equities plummeting and credit spreads blowing out as the market further digested the Federal Reserve’s aggressive rate-hike schedule amid an increasingly ominous economic forecast.

While market conditions were dire on Thursday, the domestic high-yield primary market saw a drive-by as Entegris Inc. priced $895 million eight-year non-call-three senior notes (Ba2/BB/BB). The deal came with a deep discount, a growing phenomenon in high-yield primary market activity.

The rally after the Federal Reserve’s Wednesday announcement, which drove the market up ½ to 5/8 point gave way to panicked selling on Thursday with ETFs and real money accounts offloading positions, sources said.

Travel and leisure names were particularly hard hit with several cruise lines lower as the reopening trade collapsed.

Univision Communications Inc.’s 7 3/8% senior notes due 2030 (B1/B+) became the latest recent issue to sink underwater with the notes falling below their discounted issue price.

Cleveland-Cliffs Inc.’s 4 7/8% senior notes due 2031 (Ba3) continued to see heavy volume with the notes giving back some of their gains from a three-day rally.

High-yield mutual and exchange-traded funds saw the largest outflow of the year $5.705 billion leaving the space in the week through Wednesday’s close, according to the Refinitiv Lipper US Fund Flows report.

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