Junk primary market quiet; Carnival notes higher on revenue jump; Icahn notes improve

By Cristal Cody and Paul A. Harris

Tupelo, Miss., Dec. 21 – The high-yield new issue market remained inactive on Thursday, as expected.

With the approach of the year-end holidays, primary market activity for 2023 has now almost certainly run its course, sources said.

In late-year news on market technicals, the dedicated high-yield bond funds saw $1.07 billion of net inflow during the week to Wednesday’s close, as reported by fund-tracker Refinitiv Lipper, a market source said.

“The market is better,” a source said Thursday following Wednesday’s drop. “The CDX was up. The HYG was up.”

The iShares iBoxx High Yield Corporate Bond ETF added 35 cents, or 0.45%, to $77.56.

“It was a little bit quieter today than usual,” a trader said. “The market is firm and strong, but the volume today was not that big.”

Secondary interest in Carnival Corp.’s junk paper climbed Thursday after the company reported strong fourth-quarter and 2023 revenue.

The 6% notes due 2029 (B3/B) led trading action on more than $23 million of notes changing hands, a source said.

Carnival’s 10½% notes due 2030 (B3/B) were changing hands Thursday nearly ½ point better on $8 million of volume.

New issues also were moving higher over the session.

The Icahn Enterprises LP and Icahn Enterprises Finance Corp. 9¾% senior bullet notes due Jan. 15, 2029 (Ba3/BB) rose 1/8 point and were trading with a 101 handle.

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