Junk rallies, eliminates weekly losses; Carnival lifted, earnings miss; athenahealth jumps

By Paul A. Harris and Abigail W. Adams

Portland, Me., Dec. 21 – The junk bond primary market remained quiet on Wednesday, the Winter Solstice, and is almost certain to remain that way until the new year, sources say.

Meanwhile, the secondary space staged a rally on Wednesday with a strong consumer confidence report and earnings calls sparked a buying frenzy in the space.

The cash bond market added ½ to 5/8 point to eliminate losses from the past two sessions.

“It was very ETF driven,” a source said. “They were out there looking for paper.”

ETFs circulated several offers-wanted-in-competition lists in the late afternoon which lifted the broader market, another source said.

However, activity in the space continued to diminish with many accounts already closed for the year.

Carnival Corp.’s capital structure made large gains on Wednesday after the release of earnings which fell short of expectations.

athenahealth Group Inc.’s 6½% senior notes due 2030 (Caa2/CCC/CCC+) were the top performers of Wednesday’s session with strong earnings and the market rally boosting the notes over 3 points.

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