Primary quiet; Men’s Wearhouse dives on numbers, Cenveo up on sale, funds lose $3.5 billion

By Paul Deckelman and Paul A. Harris

New York, Dec. 10 – The high-yield primary market saw little in the way of activity on Thursday in either its domestic dollar-denominated segment or in its recently busy euro-denominated portion.

An expected Thursday pricing from a unit of billboard company Clear Channel Outdoor Holdings, Inc. had not taken place by the market’s close, leaving that $225 million of five-year notes as possible Friday business.

In the secondary market, Men’s Wearhouse Inc.’s notes plunged by 8 points in heavy trading after the men’s apparel retailer reported ugly third-quarter numbers and not-reassuring guidance.

On the upside, Cenveo Corp.’s bonds firmed smartly in busy dealings, helped by the news that the printing company will sell its packaging unit.

Recently beleaguered steel names like AK Steel Holding Corp., and energy credits like California Resources Corp. were seen better on the day.

However, statistical measures of junk market performance were lower across the board for a fourth consecutive session on Thursday.

And high-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall junk market liquidity trends – turned sharply negative in the latest reporting week, posting their biggest net outflow of the year and one of the largest such cash losses ever recorded as $3.463 billion more left the weekly reporting-only domestic funds in the form of investor redemptions than had come into them during the week ended Wednesday.

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