Secondary junk market surges, closes week with gains; Carnival rebounds; Carvana rises

By Abigail W. Adams

Portland, Me., June 24 – The domestic high-yield primary market continued its dormant state on Friday despite the return of a risk-on sentiment to the market.

There remained “a ton of uncertainty,” in the market, a source said, especially with second-quarter earnings around the corner, which may put a further damper on risk appetite.

However, if the market remains stable, sources expect to see some new deals in the coming week.

The cash bond market jumped ½ to ¾ point on Friday with several offers-wanted-in-competition lists circulating, a source said.

However, the OWICs did little to spark trading activity in the space with volumes once again thin.

Fund flows were too muted to stimulate much trading activity, a source said.

Carnival Corp. was the name of the day with the cruise line operator’s capital structure jumping after a better-than-expected second-quarter business update.

Carvana Co.’s high-beta senior notes (Caa2/CCC) were also major benefactors of Friday’s rally with the notes jumping 2 points.

athenahealth Group Inc.’s 6½% senior notes due 2030 (Caa2/CCC/CCC+) continued to see heavy volume although with little change in price following Thursday’s selloff.

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