Secondary ends wild week on firm footing; Occidental, Ford stay in focus; U.S. Steel drops

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 27 – While the domestic high-yield primary market remained shuttered for its third straight week, sources were hopeful activity would soon resume, provided markets remain stable.

Meanwhile, the secondary space closed out a wild week on firm footing with credit spreads continuing to narrow and the cash bond market moving out of distressed territory.

High-yield exchange-traded funds continued to rise on Friday with the iShares iBoxx $ High Yield Corporate Bond fund seeing its largest three-day gain in history this past week.

While credit markets improved, rating downgrades continued to pour in at a dizzying pace.

Ford Motor Co.’s and Occidental Petroleum Corp.’s senior notes remained in focus with the notes continuing to improve as the bonds transfer to high-yield accounts.

While the overall market continued to firm, U.S. Steel Corp.’s senior notes were among Friday’s major losers as the company announced a series of measures to combat the financial impact of the coronavirus pandemic.

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