| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Mallinckrodt plc > News item |
Morning Commentary: Junk opens flat; Mallinckrodt sees modest bump on asset sale news
By Paul A. Harris
Portland, Ore., Aug. 24 – High-yield bonds opened flat on Wednesday amid thin late-summer trading, according to a bond trader on the East Coast of the United States.
Mallinckrodt plc’s bond prices rose modestly on news that the specialty pharmaceutical company has agreed to sell its nuclear imaging division to IBA Molecular for approximately $690 million.
The Mallinckrodt International Finance SA/Mallinckrodt CB LLC 5½% senior notes due April 15, 2025 were up 3/8 point at 98 7/8 bid, 99 7/8 offered at mid-morning, the trader said.
High-yield ETFs were flat to slightly lower at mid-morning. The iShares iBoxx $ High Yield Corporate Bd (HYG) was off 12 cents, or 0.14%, at $86.61 per share. The SPDR Barclays High Yield Bond ETF (JNK), at $36.56 per share, was down 0.18%, or 6 cents.
The primary market appears to be firmly ensconced in a late-summer dormancy expected to last until the end of the Labor Day holiday weekend in the United States, which concludes on Sept. 6, sources say, adding that numerous market participants have taken advantage of the lull by going on vacation.
However the post-Labor Day new issue market could be busy.
Recent issues
An abundance of cash and a desire for yield are providing good support for prices in the high-yield secondary market, with recent issues tending to trade at premiums to their issue prices, sources say.
The XPO Logistics, Inc. 6 1/8% senior notes due Sept. 1, 2023 (B2/B-) were 102 5/8 bid on Wednesday morning.
The $535 million issue priced at par on Aug. 12.
The Wolverine World Wide, Inc. 5% senior notes due Sept. 1, 2026 (Ba3/BB+) were par ½ bid at mid-morning.
The $250 million priced at par on Aug. 16.
A small-ish deal which was widely oversubscribed, Wolverine had struggled out of the gate, the trader recounted.
The Boise Cascade Co. 5 5/8% senior notes due Sept. 1, 2024 (B1/BB-), which also priced at par on Aug. 16, were 101¼ bid, 101¾ offered on Wednesday, the trader said.
Modest positive flows
The daily cash flows of the dedicated high-yield bond funds remained modestly positive on Tuesday, the trader said.
High-yield ETFs saw $12 million of inflows on the day.
Actively managed funds saw $45 million of inflows on Tuesday.
Dedicated bank loan funds, meanwhile, saw $52 million of inflows on Tuesday.
© 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.