New deals stay on hold, recent issues firmer, but quiet; correction names keep up comeback

By Paul Deckelman and Paul A. Harris

New York, Aug. 23 – The high yield market spent Tuesday pretty much the same way as it had on Monday – with no new primaryside activity seen and an overall sense of quiet prevailing.

Participants said that the new-deal arena remains shut, with nothing seen changing that between now and the Labor Day holiday weekend.

In the secondary realm, traders said that some of the recently priced issues, such as Big Tex Trailers and

Tallgrass Energy Partners, LP continued to add to the gains seen since their respective pricings last week – but activity levels remained extremely light, with just a couple of million of any of the new deals having been traded.

Bonds of private prison operators Corrections Corp. of America and GEO Group, Inc. remained better bid for on Tuesday – continuing the snapback which had begun on Friday following Thursday’s swoon on the news that the U.S. Justice Department will begin phasing out the use of privately run corrections facilities such as those run by the two companies.

Energy names were meantime mixed, even as oil prices surged after having been sharply lower on Monday.

Statistical market performance measures turned better across the board on Tuesday after having been mixed for two consecutive sessions before that, their third higher session in the last five trading days.

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