Junk bond sell-off intensifies; Citrix returns YTD gains; Ford below par; AMC Networks adds

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 21 – It was a brutal day in the junk bond secondary space with selling intensifying as geopolitical and interest rate concerns converged with Treasury yields skyrocketing.

While there were several days over the previous two weeks where a low open gave way to dip buying with the market lifted into the close, there was no lifting of bids on Tuesday.

The rout in Treasuries continued to pressure the junk bond market with the 10-year Treasury yield closing the day at 3.954%, its highest level since November 2022.

Citrix Systems Inc./Tibco Software Inc.’s 6½% senior secured notes due 2029 (B2/B) gave back their year-to-date gains with the notes trading at their lowest level since early January.

Ford Motor Credit Co. LLC’s 7.35% senior notes due 2030 (Ba2/BB+) fell to their lowest level since pricing in early January with the notes giving up all gains and breaking below par on heavy volume.

While the broader market had heavy selling pressure on Tuesday, AMC Networks Inc.’s 4¼% senior notes due 2029 (Ba3/BB-) continued to add with a tender offer for the company’s short-dated maturities pushing the notes higher.

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