Primary quiet ahead of holiday to cap $10.17 billion week; McClatchy active in secondary

By Paul A. Harris and Paul Deckelman

New York, Feb. 13 – There were no black cats wandering around Junkbondland on Friday the 13th – but there also wasn’t very much going on in either the primary or secondary markets.

For a second consecutive session, no new dollar-denominated, fully junk-rated deals were heard to have priced. That was in sharp contrast to the heavy pace of primary activity seen earlier in the week, including two straight sessions in the multi-billion-dollar range.

Among the factors weighing on issuance was the current earnings blackout, preventing would-be issuers from marketing prospective new deals.

Another was the relaxed pre-holiday atmosphere ahead of Presidents Day, which will shutter financial markets on Monday.

With no new issuance on either Thursday or Friday, the week’s total came to a still-impressive $10.17 billion in 18 tranches, according to data compiled by Prospect News. That was well north of the $7.80 billion which priced in 13 tranches last week, ended Feb. 6.

With no new deals having priced, traders said that market participants were playing in recently priced issues, such as those from Wynn Las Vegas LLC, Ally Financial, Inc. and Citgo Holding Inc.

Away from the new deals there was some activity in credits like McClatchy Co.

Statistical market performance measures were higher for a second straight session, finished up from where they had closed out the previous Friday for a second successive week.

© 2015 Prospect News.
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