Selling pressure returns; Altice USA lower; CommScope gains; HY funds lose $3.55 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 17 – Selling pressure resumed in the junk bond secondary market with Wednesday’s late-day rally short-lived, sources said.

The market fell about ¼ point with year-to-date returns sinking further below the 4% threshold, sources said.

Outsized outflows were taking their toll on the market with areas that were previously holding also starting to crack.

“It’s definitely a liquidity market at the moment,” a source said.

With the new issue market drying up, topical and earnings-related news continued to drive several outstanding issues into the spotlight.

Altice USA Inc. subsidiary CSC Holdings LLC’s junk bonds sank 1½ to 2 3/8 points following the cable television provider’s earnings report.

However, CommScope, Inc.’s junk bonds outperformed on a down day for the market with the notes up 1½ to 2 points following earnings.

High-yield mutual and exchange-traded funds saw their sixth consecutive week of multibillion-dollar outflows.

Funds saw $3.55 billion leave the space in the week through Wednesday’s close, according to the Refinitiv Lipper US Fund Flows report.

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