Trader sees 'a lot of bid-lists' in midday high-yield secondary market; tone muted

By Paul Deckelman

New York, Sept. 24 - The high-yield secondary market was reported quiet around mid-day Monday with no names standing out.

The most-actives list was dominated by split-rated credits mostly appealing to crossover investors from issuers like El Paso Pipepline Partners, Ford Motor Co. and Ford Motor Credit Co., and Arcelor Mittal.

Among the purely junk issues, there was some activity in Caesars Entertainment Corp.'s 11¼% notes due 2017, quoted down ¼ point at 108 bid, on volume of $11 million, and the recently priced Tesoro Corp. 5 3/8% notes due 2022, seen down 7 /16 point at just under 103 bid, with about $9 million having changed hands.

A trader said that there were "a lot of bid lists" circulating around, suggesting that "people are trying to raise some cash. I don't know what we're going to see toward the end of the week - but I think you might see some guys taking some money off the table; that's been my feeling, hedge fund guys, or guys like that."

In regards to the slew of mostly smallish deals which have been announced so far on Monday, the trader said that price talk was "all over the lot on them.

"A lot of people are just passing on them, or only picking one or two [to play in]. I heard guys are looking at Gray [Television] - that one they're happy with, with talk around the 7¾% area, but they'll pass on some of the others."

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