Morning Commentary: Junk opens 1/8 point higher; Iliad 5 3/8% bullet trades to premium

By Paul A. Harris

Portland, Ore., April 23 – The junk bond market opened 1/8 of a point higher on Tuesday, according to a bond trader in New York.

With the S&P 500 stock index up 0.53% at mid-morning, the iShares iBoxx $ High Yield Corporate Bd (HYG) share price was 0.32% better, up 24 cents at $76.64.

The primary market remained idle as the Passover holiday thinned the ranks on Wall Street, sources said.

The Iliad SA 5 3/8% senior bullet notes due May 2031 (Ba2/BB/BB) were trading at a slight premium to their new issue price, as the London session got underway, according to a source there, who spotted them at par bid, par 3/8 offered.

The €500 million debt refinancing deal priced at par on Monday, tight to downwardly revised talk, playing to €1.6 billion of investor demand.

Fund flows

High-yield ETFs saw $54 million of daily cash inflows on Monday, according to a market source.

Actively managed high-yield funds were flat to slightly negative on the day, sustaining $2 million of outflows on Monday.

The combined funds are tracking $9 million of net outflows on the week that will conclude with Wednesday’s close, according to the market source.

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