Primary quiet to close out month, third quarter; Cablevision, Frontier, Olin firm solidly

By Paul Deckelman and Paul A. Harris

New York, Sept. 30 – The high-yield primary market ended the month of September and the 2015 third quarter on a quiet note during Wednesday’s session. Syndicate sources reported that for a third consecutive session, no issues priced. Prospective issuers were instead warily evaluating the recently volatile financial markets, including Junkbondland.

The primary closed out September with $25.42 billion of new dollar-denominated, fully junk-rated paper from domestic or industrialized-country issuers having come to market during the month in 25 tranches, according to data compiled by Prospect News.

That was nearly double the $13.39 billion of such paper that had priced in 24 tranches in August, but it failed to live up to optimistic early projections for as much as $35 billion or $40 billion of new bonds for the month. It also badly trailed the $39.62 billion that had come to market in 56 tranches in March, this year’s heaviest month for new issuance so far.

Year-to-date new issuance meantime stood at $230.85 billion in 360 tranches, running about 7.9% behind the primaryside pace seen last year.

Among specific issues, traders saw a continued rebound in recently priced deals such as Cablevision Systems Corp., Olin Corp. and Frontier Communications Corp., all of which had lately been under pressure.

Statistical measures of junk market performance were also rebounding on Wednesday from lengthy losing streaks for each of those market gauges.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.