Market whipsaws post-CPI; Carnival volatile; Albertsons gains; junk funds lose $713 million

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 13 – The dollar-denominated primary market watched from the sidelines as the global capital markets took a roller coaster ride.

Meanwhile, volatility rocked the secondary space on Thursday as the market digested the latest Consumer Price Index report.

A green open gave way to heavy selling as the report came in hotter-than-expected and the market fully priced in a 75 basis points rate hike.

However, the market ripped off its lows after the close of European markets with the cash bond market ending the day largely unchanged.

Carnival Corp.’s capital structure embodied the volatility of Thursday’s session with several tranches hitting all-time lows before bouncing back to close the day in positive territory.

DISH DBS Corp.’s capital structure continued to attract attention as the satellite broadcaster mulls divesting its recently acquired wireless network.

While DISH’s senior notes continued to trade in volume, there was little movement in price, a source said.

Albertsons Cos., Inc.’s senior notes were on the rise following news reports that a merger agreement with rival grocery store chain Kroger was in the works.

Meanwhile, outflows resumed with high-yield mutual and exchange-traded funds losing $713 million in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow report.

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