| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Standard Industries Inc. > News item |
Morning Commentary: Junk weakens on Friday; New Standard Industries paper outperforms
By Paul A. Harris
Portland, Ore., Feb. 19 – After rallying through the week, retracing most but not all of the ground it had given up during February, junk opened weaker on Friday, according to traders.
Cash bonds were ½ point to 1 point lower on the day, a trader said.
High-yield ETFs were lower. The iShares iBoxx $ High Yield Corporate Bd (HYG) was down 19 cents, a even quarter of a percent, heading into the New York mid-morning, trading at $77.30 per share. SPDR Barclays High Yield Bond ETF (JNK), at $32.20 per share, was down 12 cents, or 0.37%.
Energy-related bonds were under a disproportionate amount of pressure on Friday morning, tracking crude oil prices lower, sources said. The barrel price of West Texas Intermediate crude oil for March 2016 delivery was down $1.36, or 4.42%, on the day at $29.41.
Standard Industries gains
Bonds that priced on Thursday from Standard Industries, Inc. were outperforming the market on Friday, traders said.
The new Standard Industries 5 1/8% senior notes due Feb. 15, 2021 were up ¾ of a point, and the new 5½% senior notes due Feb. 15, 2023 were up half a point, according to a Boston-based trader, who said that the deal was heard to have been vastly oversubscribed.
A New York trader saw both new issues at par ¾ bid, 101¼ offered and noted that not much activity was seen in the name prior to early Friday morning.
The $1 billion deal (Ba2/BBB-) came in two $500 million tranches that priced at par on Thursday.
Quiet primary
There were no new announcements in the primary market.
One deal is on the road.
Solera, LLC is marketing $2.03 billion equivalent of eight-year senior notes in tranches of euro-denominated and dollar-denominated notes.
The proposed dollar-denominated notes appear to be shaping up in a 9½% to 10% yield range, a market source said on Friday.
© 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.