Morning Commentary: II-VI notes on tap; high-yield secondary unchanged in early trading

By Abigail W. Adams

Portland, Me., Dec. 2 – The domestic high-yield bond primary market broke its silence on Thursday with one offering on tap.

II-VI Inc. plans to price a $990 million offering of eight-year non-call three-year senior notes with initial price talk in the 5½% area, according to a market source.

The offering was being marketed via an investor conference call at 11 a.m. ET. However, sources were uncertain about the timing of the deal.

The primary market was off to a slow start in December as volatility rocked the market after a hawkish about face by Federal Reserve chairman Jerome Powell.

However, investor appetite for new paper remains strong despite the volatility with $15 billion to $25 billion in new supply expected before 2021 draws to a close, sources said.

Meanwhile, the secondary space opened the day largely unchanged but rallied as the session progressed.

However, trading volumes remained muted, a source said.

Meanwhile, outflows continued in the secondary space with high-yield exchange traded funds losing $58 million and actively managed funds losing $325 million on Wednesday, the most recent session the information was available.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.