Junk secondary rallies as Fed hikes rate 75 bps; Cleveland-Cliffs erases losses; Post rises

By Abigail W. Adams

Portland, Me., June 15 – The domestic high-yield primary market remained silent on Wednesday as the secondary space soared on the heels of the Federal Reserve’s 75 basis points rate hike.

Iris Holdings Inc.’s $400 million offering of 6.5-year senior notes (Caa2/CCC+) backing the buyout of Intertape Polymer Group Inc., the sole deal in the market, was expected to price during Wednesday’s session.

Meanwhile, the cash bond market jumped 1 point on Wednesday, paring losses from the previous three sessions, which saw the market fall by almost 4 points.

While Wednesday’s strong rally was a little “head scratching,” short-covering and ETFs were contributing to the market’s strength, a source said.

Carvana Co.’s senior notes were among the benefactors of the ETF-driven spike with its capital structure lifted in the rally.

Cleveland-Cliffs Inc.’s 4 5/8% senior notes due 2029 and 4 7/8% senior notes due 2031 (B3//B) continued their upward momentum with the notes wiping out losses from Monday’s sell-off.

Post Holdings, Inc.’s senior notes (B2/B+) were also making large gains in active trading.

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