Junk liquidity thins; NFP notes pop; Alteryx improves; Kinetik up

By Cristal Cody

Tupelo, Miss., Dec. 20 – It was Jingle all the way in junkland on Wednesday, a trader said, forecasting that the market’s liquidity would continue to thin into the holiday weekend ahead.

While market action overall was quieter, some junk bond issues were popping Wednesday, sources said.

“There’s been a lot of spread compression the last couple of weeks,” a trader said.

NFP Corp.’s 6 7/8% senior notes due August 2028 jumped over the session on news that Aon plc will acquire the middle-market insurance brokerage for about $13.4 billion in cash and stock.

The bonds climbed more than 7 points from Tuesday.

“That bond is the most active high yield bond today,” a source said. “Biggest gainer, too.”

Alteryx, Inc.’s 8¾% senior notes due 2028 also were up about 1 point on the day and more than 5 points better since Monday’s announcement the data analytics company agreed to be acquired by Clearlake Capital Group LP for $4.4 billion.

Despite the stock market’s swoon, recent issues including Kinetik Holdings LP’s $300 million add-on to its 6 5/8% senior sustainability-linked notes due Dec. 15, 2028 (Ba1/BB+/BB+) improved over the day.

The bonds were trading about ½ point higher from earlier in the session.

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