Morning Commentary: High-yield secondary firms, CHS pares losses post-earnings

By Abigail W. Adams

Portland, Me., Oct. 27 – The domestic high-yield primary market pipeline remained empty on Thursday despite the continued firm tone in the secondary space.

While volume was thin early Thursday with no new issuance to jumpstart trading activity, ETF buying continued to lift the overall market with inflows into the asset class strong over the past week.

ETFs reported their eighth consecutive daily inflow on Wednesday, bringing the month-to-date total to $5.29 billion, according to a market source.

Earnings remained a driver for trading activity in the space with results a mixed bag.

CHS/Community Health Systems Inc.'s senior notes were on the rise in early trading with earnings results not as bad as feared.

The hospital chain operator’s 5¼% senior secured notes due 2030 (B2/B) pared losses from a pre-earnings sell-off that drove the notes to a historic low.

The 5¼% notes reclaimed 3 points after posting earnings results with the notes trading in the 65½ to 66 context early in the session.

The notes sank 6 points to a 63-handle following Tenet Healthcare Corp.’s earnings results late last week.

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