Global Cash prices as junk rally accelerates; energy names bounce; funds lose $3.1 billion

By Paul Deckelman and Paul A. Harris

New York, Dec. 18 – The high-yield market’s unlikely rally continued for a second consecutive session on Thursday, bringing with it an unexpected new-deal pricing.

Global Cash Access Holdings Inc. priced $700 million of senior secured and unsecured notes – a deal which had been widely thought of as next year’s business.

That deal appeared to have gotten done in the context of Thursday’s strong rally – Junkbondland’s second straight session on the rebound, after having been battered around for more than a week before that.

Traders attributed the continued surge to a combination of short-covering from recently oversold levels as well as the expectation that the Federal Reserve System will likely take its time when considering future hikes in interest rates.

As on Wednesday, Thursday’s advance was dominated by energy names continuing to climb from their recent bottom levels, including Meg Energy Corp. and Sand Ridge Energy Inc.

The energy names rose, even as the price of crude oil resumed its recent slide.

Statistical indicators of junk market performance were higher across the board on Thursday for a second consecutive session.

High-yield mutual funds and exchange-traded funds posted a huge net outflow in the latest week, their third consecutive such large downturn, as $3.084 billion more left those funds than came into them in the latest recording week.

© 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.