Primary pause continues, early September rebound seen; Constellium, other aluminum gain

By Paul Deckelman and Paul A. Harris

New York, Aug. 30 – For yet another day, the high yield primary market stood stock still on Tuesday, letting the long pre-Labor Day holiday lull continue winding down.

But with the holiday break fast approaching, some primaryside sources were talking up the notion that the return of new-deal activity to Junkbondland might come earlier in September than initially thought, as issuers look to do their deals before the Federal Reserve pulls the trigger on an expected interest rate hike.

Away from the lack of new-deal activity on the session, market sources saw some activity in the bonds of aluminum products producer Constellium NV, apparently given a boost by the news that sector peer Aleris Corp. is being acquired. That company’s own paper meantime continued to firm, though on limited volume.

Traders saw sizable gains in one of Intelsat SA’s issues, on the news that the communications satellite company will exchange new notes for those existing bonds.

Statistical market performance measures turned mixed on Tuesday, after having been higher all around on Monday, which had followed three straight mixed sessions at the end of last week.

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