Trading light as credit spreads continue to blow out; energy names crater; HCA down again

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 16 – The high-yield primary market remained shuttered on Monday, which was another ugly day for the secondary space.

Losses continued to mount and credit spreads continued to blow out with the Federal Reserve’s emergency rate cut failing to ease investors’ concern.

However, trading activity in the secondary space was light with the lack of liquidity contributing to the dramatic price swings, a market source said.

The energy sector remained the hardest hit by the sell-off with several recently priced deals moving further into distressed territory.

Transocean Inc.’s 8% senior notes due 2027 and WPX Energy, Inc.’s 4½% senior notes due 2030 continued to bottom out as crude oil futures sank below the $30 a barrel threshold.

Losses continued to mount for the entertainment and travel industries as countries close their borders and public gatherings are curtailed to prevent the spread of the coronavirus.

AMC Entertainment Holdings Inc.’s junk bonds continued their downward momentum on Monday with S&P placing the movie-chain operator on watch for downgrade.

HCA Inc.’s 3½% senior notes due 2030 and Charter Communications Inc.’s recently priced senior notes also continued their downward trajectory.

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