W&T Offshore prices with double-digit yield; AA soars; Ford adds point; Tegna pressured

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 12 – Thursday’s junk bond primary market brought W&T Offshore Inc.’s offering with a Caa1 rating on one side of the split.

Meanwhile, the secondary space continued to rally on the heels of December’s consumer price index report, which wielded few surprises.

The report came in line with expectations and continued to fuel bets for the Federal Reserve to lift rates by 25 basis points as opposed to 50 bps on Feb. 1, despite the continued strength of the labor market.

The cash bond market added another ½ point to the strong gains made since the start of the year.

With the CPI report now in rear-view, the market’s attention was shifting to earnings with market players on high alert for recession indicators.

However, few were found on Thursday with American Airlines, Inc.’s junk bonds on the rise after the company lifted forward guidance ahead of earnings.

Ford Motor Credit Co. LLC’s recently priced 7.35% senior notes due 2030 (Ba2/BB+/BB+) resumed their strong uptrend with the notes adding another 1 point in heavy volume.

While the “lift-a-thon” continued in the secondary space, Tegna Inc.’s junk bonds were under pressure as political opposition to Standard General’s acquisition of the broadcaster mounts.

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