Secondary space gains, credit spreads tighten; Ford, Delta eyed; HCA, Tenet Healthcare improve

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 24 – While the domestic high-yield primary market remained closed on Tuesday, the appetite for risk returned to the secondary space with the overall market on the rise.

While cash bonds remained in distressed territory, credit spreads for ETFs tightened significantly during Tuesday’s session, a market source said.

While volume remained relatively light, there was an uptick in activity with higher-quality credits in demand.

Ford Motor Co.’s split-rated senior notes were in focus on Tuesday with the company on the verge of becoming the latest fallen angel to enter junkbondland.

Delta Air Lines Inc.’s senior notes were also being eyed after S&P downgraded the company to junk.

HCA Inc. 3½% senior notes due 2030 (Ba2/BB-/BB) and Tenet Healthcare Corp.’s 6 ¾% senior notes due 2023 were among the most actively traded names in the healthcare space with both rising alongside the broader market.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.