NCL prices in choppy waters; secondary falls on CPI report; short-term notes ‘get socked’

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 10 – One drive-by deal sailed through choppy high-yield waters to land new paper.

Norwegian Cruise Line Holdings Ltd. chose a tumultuous Thursday, but had a receptive primary market for its $1.6 billion deal.

Meanwhile, it was an “ugly” day in the secondary space as the 10-year Treasury yield shot past 2% following the latest Consumer Price Index report, sources said.

The CPI annual increase of 7.5%, which came in greater than the 7.2% expected, sent the Treasury market into a tailspin.

The data coupled with hawkish comments from Federal Reserve officials reignited the sell-off in high yield with the market down about 1 point.

Short-duration, low-coupon issues in the BB index were among the hardest hit.

High-yield mutual and exchange-traded funds had their fifth consecutive week of multibillion-dollar outflows with $1.962 billion exiting the space in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flows report.

© 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.