Junk secondary tone improves; Netflix pares losses; Norwegian improves; Bombardier gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 15 – The domestic high-yield primary market remained dormant on Tuesday despite an improved tone to the market.

Sources were mixed about the pending calendar with some expecting a deal-less week as markets continue to see-saw.

Meanwhile, buyers were returning to the secondary space on Tuesday as investors returned to risk assets amid a decrease in geopolitical tensions.

The cash bond market added ¼ to ½ point during the session.

However, with the 10-year Treasury yield shooting back above the 2% threshold, pressure remained on lower-yielding notes which were lagging in the rally, sources said.

Netflix Inc.’s split-rated senior notes were lifted in active trading although they remained near their recent lows.

Norwegian Cruise Line Holdings Ltd.’s recently priced secured and unsecured tranches were also improved with the higher-yielding unsecured tranche shooting back above par as their secured counterpart remained under water.

Bombardier Inc.’s 6% senior notes due 2028 (Caa1/CCC+) were also on the rise on Tuesday following news of the partial redemption of the company’s shorter-duration notes.

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