Morning Commentary: High yield opens firm; SunOpta Foods sets price talk; fund flows mixed

By Paul A. Harris

Portland, Ore., Oct. 6 – High-yield bonds were firm heading into mid-morning on Tuesday, according to a trader based on the East Coast of the United States.

“Yesterday people were reaching, and they’re not reaching that much today, but it still feels pretty good,” the source remarked.

Cash flows for dedicated high-yield funds were mixed on Monday.

High-yield ETFs were reported to have seen $49 million of inflows on the session; however, that number seemed extremely low to the trader, who saw $3 billion of offers wanted in competition.

The ETF money is fast money, and therefore a moving target, so a final number is difficult to pin down, the trader conceded.

Asset managers, meanwhile, sustained $220 million of outflows on Monday.

SunOpta sets talk

In the primary market SunOpta Foods Inc. talked its $330 million offering of senior secured second-lien notes due 2022 (B3/B) at a to-be-determined discount to yield 10%.

The acquisition deal, via BMO, Jefferies and Rabobank, is expected to price Wednesday afternoon (see related story in this issue).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.