Junk volatile post-Fed; Citrix at a premium on debut in secondary; Royal Caribbean gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 21 – Market players spent a good part of the day waiting for the Federal Open Market Committee release, a day inconducive to pricing new paper in the junk bond primary market.

Meanwhile, it was a volatile day in the secondary space on Wednesday as the market swung between gains and losses as it digested the FOMC’s 75 basis points rate increase and Federal Reserve chair Jerome Powell’s press conference.

While the market spiked higher midway through Powell’s commentary, the rally gave way to heavy selling into the close, a source said.

While the market spiked higher and lower surrounding the Federal Reserve announcement, the activity in the space was orderly, a source said.

Citrix Systems Inc./Tibco Software Inc.’s 6½% senior secured notes due 2029 (B2/B) dominated activity on their first full day in the secondary with the notes trading at a healthy premium to their heavily discounted issue price although they closed the day well off their highs.

Royal Caribbean Group’s 11 5/8% senior notes due 2027 (B3/B) bucked the broader market trend and ended the day with gains.

However, Carvana Co.’s 10¼% senior notes due 2030 (Caa2/CCC) were retesting all-time lows with the yield again breaking above 16%.

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