JOLTS report jolts buyers in junk secondary; Catalent rises; Ford improves; Coinbase gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 29 – While Tuesday marked another quiet session in the junk bond secondary space with liquidity continuing to thin ahead of the Labor Day weekend, it was a strong day for the market with the latest JOLTS report jumpstarting buyers.

Equity indexes surged and Treasury yields slumped following fresh labor data that reported 8.83 million job openings, a multiyear low and a figure that came in well below forecasts.

The cash bond market opened Tuesday flat but closed up ¼ to 3/8 point, a source said.

Rate-sensitive names were strong in the session with Ford Motor Credit Co. LLC’s senior notes (Ba2/BB+) on the rise after drifting lower throughout August.

Topical news pushed Catalent Pharma Solutions, Inc.’s 3 1/8% senior notes due 2029 (B1/BB-) into the spotlight with the notes improved following an agreement with activist investor Elliot Investment Management.

While volume was light, Coinbase Global, Inc.’s senior notes (B1/BB-) jumped following news of Grayscale’s successful lawsuit against the Securities and Exchange Commission, which paves the way for SEC bitcoin ETF approval.

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