Junk secondary losses mount as geopolitical risks weigh on markets; NCL in focus, tranches mixed

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 11 – The high-yield primary market was dormant on Friday amid an empty forward calendar and continued volatility in the secondary space.

However, deals are expected in the week ahead, such as Viasat Inc.’s $1.6 billion offering of unsecured notes.

Meanwhile, “it was like a yo-yo,” in the secondary space, a source said.

While the market saw a momentary reprieve from Friday’s sell-off early in the session, it plummeted in the afternoon.

“The market was up until news came out about Ukraine, then it dropped like a rock,” the source said

Heavy selling took place following U.S. officials warning that Russia’s invasion of the Ukraine was imminent.

The market gave back its early gains and closed down about ½ point, compounding losses from Thursday’s inflation-induced sell-off.

Norwegian Cruise Line Holdings Ltd.’s secured and unsecured tranches were putting in a mixed performance amid the volatility with the higher yielding unsecured notes above water while their lower-coupon secured counterpart sank below.

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