Junk bond trading weakens following Fed minutes; Ford, EnLink, Solenis hold premiums

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 17 – The high-yield primary market, having seen $4.78 billion of week-to-date issuance, sat idle on Wednesday, and the active forward calendar remained empty.

Meanwhile, the secondary space was again soft on Wednesday with the market reassessing the dovish pivot that drove the rally of the past three weeks following the release of the Federal Reserve’s July meeting minute notes.

The market opened down ˝ point in a general de-risking ahead of the 2 p.m. ET release.

There was some “knee-jerk” buying action immediately following the release; however, selling resumed after Treasuries failed to rally with the market closing where it began – down ˝ point.

While the macro-outlook was the focus of the broader market, new paper was the focus of trading activity in the secondary space with the deals to clear the primary market on Tuesday holding up well despite the soft day for the market.

Ford Motor Co. 6.1% senior green notes due 2032 (Ba2/BB+), EnLink Midstream, LLC’s 6˝% senior bullet notes due 2030 (Ba1/BB+/BB+) and Cheever Escrow Issuer, LLC’s (Solenis) 7 1/8% senior secured notes due 2027 (B2/B-) remained above water in high-volume activity.

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