Junk posts highest volume since May; secondary surges; Spirit, Ball at a premium

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 10 – The primary junk market remained dormant on Thursday ahead of the extended Veterans Day holiday weekend in the bond market in the United States.

Notwithstanding its quiet conclusion, the week to Thursday had $6.01 billion of new issue business – the largest weekly amount of dollar-denominated issuance since late May, according to Prospect News data.

Meanwhile, the secondary space surged on Thursday following October’s Consumer Price Index report which reflected a faster deceleration of inflation than anticipated.

The cash bond market jumped 2 points in a single session as equity indexes posted historic single-day gains and Treasuries rallied as the market dialed back its expectations for the terminal fed fund rate, a source said.

The deals to price over the past week surged alongside the broader market with new paper from Ball Corp., Spirit Airlines, Inc., Neptune BidCo US Inc./Nielsen Holdings plc and DISH Network Corp. all trading at steep premiums to their issue price.

Ford Motor Credit Co. LLC’s recently priced 7.35% senior notes due 2027 (Ba2/BB+/BB+) hit their highest level since breaking for trade.

Meanwhile, high-yield mutual and exchange-traded funds continued to see strong inflows with another $1.255 billion entering the space in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flows Report Newsline.

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