More red in junkland; Ford active, but flat; Charter on a 97-handle; Carvana retests lows

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 30 – There was more red in the secondary space on Tuesday with the cash bond market dropping another ½ point after a strong open, sources said.

The cash bond market was up ¼ point early in the session with equity futures in the green.

However, selling pressure quickly set in with rate and recession concerns continuing to drag down the market as the Federal Reserve accelerates its balance sheet runoff.

ETF buying, which drove the dovish pivot rally throughout much of August, has given way to ETF selling with ETFs circulating several bids-wanted-in-competition lists on Tuesday, a source said.

While the secondary space continued to go red on Tuesday, volume remained thin with large, liquid issues and recently priced paper dominating the tape.

Ford Motor Co.’s recently priced 6.1% senior green notes due 2032 (Ba2/BB+) remained active although with little movement in price with the notes remaining on a 98-handle.

Charter Communications, Inc. subsidiary CCO Holdings, LLC’s 6 3/8% senior notes due 2029 (B1/BB-) were also active with the notes remaining on a 97-handle.

Carvana Co.’s 10¼% senior notes due 2030 (Caa2/CCC) were retesting their lows with the notes breaking below an 80-handle on Tuesday for the first time since the dovish pivot rally began in late July.

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