Madison tranches mixed; Colgate at a premium; funds lose $2.23 billion; junk primary pauses

By Paul A. Harris and Abigail W. Adams

Portland, Me., June 17 – The new issue bourse remained quiet on Thursday, in the wake of Wednesday's Federal Open Market Committee meeting in which central bankers alluded to likely rate hikes on the far horizon and slipping support for Fed bond-buying measures.

Meanwhile, the secondary space was slightly softer on Thursday.

While low-coupon, longer-duration notes took the brunt of the market weakness as 10-year Treasury yields ticked higher, the overall market was little changed, sources said.

Madison IAQ, LLC’s new tranches were mixed with the higher-coupon unsecured notes outperforming their lower-coupon secured counterpart – a trend in recent dual-tranche secured/unsecured offerings.

Colgate Energy Partners III LLC’s 5 7/8% senior notes due 2029 (B3/B) were trading with a premium to their issue price although they remained on a par handle.

Apollo Commercial Real Estate Finance, Inc.’s 4 5/8% senior secured notes due 2029 (Ba2/B+) continued to struggle in the secondary space with the notes sinking further below par in active trading.

Meanwhile, funds continued to leave the space with high-yield mutual and exchange-traded funds seeing outflows of $2.23 billion.

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