Morning Commentary: AMC up ¾ point as CEO mulls debt repayment; junk bonds see inflows

By Paul A. Harris

Portland, Ore., Jan. 3 – Junk opened unchanged on Monday, according to a trader in New York.

Secondary market activity was thin, and the new issue market is expected to wait until later in the week to kick off 2022 high-yield issuance, the source added.

The iShares iBoxx $ High Yield Corporate Bd (HYG) share price was $86.90 at mid-morning, down 0.13% or 11 cents, lagging the Dow Jones industrial average, which was up 0.25%.

Bonds of AMC Entertainment Holdings, Inc. advanced on news that chief executive officer Adam Aron said that the company wants to refinance debt in 2022, the bond trader said.

The AMC Entertainment Holdings 10% senior secured second-lien notes due 2026 were wrapped around par on Monday morning, up ¾ of a point on the day, the source added.

Solid Friday inflows

The dedicated high-yield bond funds saw $581 million of net inflows last Friday, according to a market source.

High-yield ETFs saw $355 million of inflows on the day.

Actively managed high-yield funds saw $226 million of inflows on Friday, the source said.

The combined funds saw $1.72 billion of net inflows in the past two weeks, according to the market source, who added that the combined funds sustained $13.6 billion of net outflows for the year 2021.

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