Tenet downtrend continues; Carnival on the rise; Weatherford gains pre-earnings

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 24 – The junk primary market is open to issuers that have high single B or better credit ratings, coming with middle-of-fairway deals, sources said Monday.

As evidence they pointed to last week's Carnival deal, asserting that although the price of raising capital by means of issuing speculative grade bonds has gone up dramatically, market technicals presently favor such an issuer receiving a fair or better execution.

Meanwhile, it was a quiet session in the secondary space with the cash bond market either side of unchanged in light volume as market players turn their attention to the deluge of earnings due before the end of the week.

Tenet Healthcare Corp.’s 6 1/8% senior notes due 2028 (B3/B-) remained in focus as they continued their downtrend in the wake of last week’s earnings report.

Carnival Corp.'s recently priced 10 3/8% senior priority notes due 2028 (B2/B+) were gaining upward momentum in heavy volume with the notes brushing against par in heavy volume.

Weatherford International Ltd.’s 8 5/8% senior notes due 2030 (B3/CCC+) continued to gain in active trading as the oilfield services company’s earnings report approaches.

© 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.