Junk’s post-Brexit rebound continues; primary stays quiet; Alcoa jumps on split-up details

By Paul Deckelman and Paul A. Harris

New York, June 29 – The high-yield market made it two-for-two on Wednesday, posting its second straight strong session as it continued to rebound from the market turmoil initially seen Friday and again on Monday in the wake of Britain’s surprise popular vote last week to leave the European Union.

As had been the case on Tuesday, Junkbondland moved in tandem with other risk assets such as equities in snapping back from their two-session decline.

However, there was no primaryside activity to speak of, and the new-deal market is expected to remain in a holding pattern until after the upcoming extended Independence Day holiday weekend in the United States.

In the secondary arena, traders said the clear standout performer on Wednesday was Alcoa Inc., several of whose issues firmed smartly in active trading after the big aluminum producer revealed the long-awaited details of its previously announced plan to split itself into two companies, one an upstream producer of aluminum and the other a value-added manufacturer of aluminum products.

Big, liquid higher-beta credits such as Frontier Communications Corp. and Western Digital Corp. were among the key gainers.

So were such energy issues as Oasis Petroleum Inc., Chesapeake Energy Corp. and California Resources Corp.

Statistical market performance measures were higher across the board on Wednesday for a second consecutive session.

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