Junk: First Quantum under pressure as Panamanian mine ceases ops; Solenis active post-earnings

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 28 – The junk bond space put in a strong session on Tuesday as Treasury yields tumbled on dovish comments from Federal Reserve officials, a source said.

The cash bond market added ¼ point with ETF buying lifting the broader market.

The secondary space has had a spectacular rally since the Consumer Price Index print in mid-November with the debate about future rate increases coming to an end.

However, the market is now anticipating rate cuts in the coming year, which may be premature, or may be necessitated by a recession the market has not priced in, sources warn.

While a strong session, trading activity was muted as market players await the primary market to reactivate.

Earnings and topical news remained the drivers of activity in the space during Tuesday’s session.

First Quantum Minerals Ltd.’s senior notes were again under pressure after the company suspended operation of its Panamanian mine due to growing civil and legal challenges.

Olympus Water US Holding Corp.’s (Solenis) 9¾% senior secured notes due 2028 (B3/B-) continued to trade at all-time highs in the wake of another positive earnings report.

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