Bath & Body jumps post-earnings; Flora Food on an uptrend; HY funds add $2.93 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 17 – With a quiet primary market in the high-yield sector, the secondary space was in focus and continued to give back gains on Thursday with the cash bond market off ¼ to 3/8 point as the market reevaluated the dovish pivot rally sparked by softer than expected inflationary figures.

The secondary space has slipped over the past two sessions as equities turned negative on the heels of hawkish comments from Federal Reserve officials and analysts’ upwardly revised forecasts for the terminal Fed rate.

With activity surrounding recent issues tempering, topical and earnings-related news were drivers of activity in the space.

Bath & Body Works, Inc.’s senior notes were on the rise in heavy volume as the company’s capital structure climbed 1 to 2½ points following a large earnings beat.

Sigma Holdco BV’s (Flora Food Group) 7 7/8% senior notes due 2026, an illiquid issue that rarely trades in volume, were active on Thursday with the strong gains made over the past month continuing.

Medical Properties Trust, Inc.’s split-rated 5% senior notes due 2027 (Ba1/BBB-) were softer in heavy volume.

Meanwhile, cash continued to enter the space with high-yield mutual and exchange-traded funds seeing inflows of $2.93 billion in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flows report.

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