Carnival rebounds, outstanding issues improve; Avaya tanks; HY funds lose $2.6 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 19 – The primary market remained sidelined on Thursday.

Meanwhile, the secondary space was quiet on Thursday after the previous session’s sell-off pushed the market to new lows.

Carnival Corp.’s capital structure was in focus on Thursday with the cruise line operator’s new 10½% senior notes due 2030 (B2/B) staging a rebound.

After a weak break that saw the notes sink to a 98-handle, the notes ended Thursday’s session wrapped around par.

Carnival’s outstanding issues also improved after selling off in the wake of the new offering.

In a carryover from the previous session, Triumph Group, Inc.’s senior notes continued to fall after a disappointing earnings report.

Avaya Holdings Corp.’s 6 1/8% senior notes due 2028 (B2/B+) led losses during Thursday’s session with the downward spiral of the notes accelerating.

Meanwhile, high-yield mutual and exchange-traded funds continued to see outsized outflows with $2.605 billion leaving the space in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow report.

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