Junk bonds unchanged post-Fed; First Republic volatile; Carvana gains on exchange

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 22 – While the dollar-denominated high-yield bond primary market remained dormant on Wednesday, there were signs of life in Europe with France-based telecom Iliad Group setting March 29 meetings with fixed-income investors.

Meanwhile, it was a quiet day in the secondary space as the event the market had been waiting for transpired – the Federal Open Market Committee delivered its rate hike decision and addressed the recent instability in the banking sector.

There was a mini-surge of buying activity in response to comments made during Powell’s press conference.

However, selling took hold into the close with the cash bond market ending the day largely unchanged but the CDX index driven down about ¾ point.

First Republic Bank’s 4 3/8% subordinated notes due 2046 (B2/B-) were volatile with the notes adding early in the session but closing the day with losses.

DISH Network Corp.’s 11¾% senior secured notes due 2027 (Ba3/B+) gave back gains from the previous session with the notes hitting a new all-time low.

While the broader market was laser-focused on the Fed on Wednesday, topical news pushed Carvana Co. into the spotlight.

News that the struggling used car e-commerce company, which has long been marked as a default candidate, had launched an exchange for five series of notes sent its short-duration notes soaring.

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