Fed takes focus; Xerox falls into junkbondland; Micron under pressure

By Paul A. Harris and Abigail W. Adams

Portland, Me., Dec. 19 – The eyes of the financial markets were on the Federal Reserve on Wednesday with the much anticipated fourth rate increase of 2018 announced.

While the market largely expected the rate increase and was thought to respond favorably to a dovish tone for 2019, equities plummeted following the meeting.

Meanwhile, the high-yield secondary space remained under pressure with credit spreads continuing to widen and losses mounting in the final weeks of the year.

Xerox Corp.’s senior notes were active in the secondary space after the company achieved falling angel status with a downgrade by Moody’s and S&P to junk.

The notes were mixed with some down more than 2 points and others posting gains.

Micron Technology Inc.’s 5½% senior notes due 2025 were also down in high-volume activity after the company released its first-quarter earnings report.

Its projections for a pullback in revenue and a slowdown in demand for memory chips helped drag down other names in the tech universe.

However, the secondary space continued to be dominated by California Resources Corp.’s 8% senior notes due 2022, which continued to lose ground.

While there was a bounce in crude oil futures on Wednesday, they remain well below the closely watched $50 threshold.

© 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.