Junk secondary unmoved by Fed tapering statement; Teva flat; Jane Street on a 101-handle

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 3 – With a backdrop of a slowing new issue primary, it was a quiet day in the secondary high-yield bond space.

The Federal Reserve’s announcement related to bond tapering did little to move the market one way or another.

Equities rallied on the heels of the announcement and Treasuries sold off with the 10-year yield closing the day at 1.606%, which “meant a whole lot of nothing for the [high-yield] market,” a source said.

The market was soft early in the session and improved alongside equities heading into the close; however, there was no major movement in either direction.

While there may be some follow-through in future sessions with the rise in Treasuries, it was business as usual in the secondary space on Wednesday with new paper continuing to dominate the tape.

Jane Street Group, LLC’s 4˝% senior secured notes due 2029 (Ba2/BB-) were putting in a strong performance with the notes continuing to trade on a 101-handle.

However, Teva Pharmaceutical Industries Ltd.’s dollar-denominated bonds (Ba2/BB-/BB-) fell flat with the notes wrapped around par.

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