Junk secondary swings to green following Federal Reserve minute notes; Cedar Fair gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 16 – Rate scares and geopolitical concerns continued to sideline the domestic high-yield primary market with Wednesday marking a full week with no new issuance.

The reactivation of the calendar remains speculative with some sources expecting an imminent restart and others anticipating the quiet to continue.

As potential issuers waited for market conditions to stabilize, volatility continued to roil the secondary space with the market down about ¼ point early in the session but up ¼ point by the market close.

“It was quite a swing,” a source said.

While the market was under pressure early in the session, selling pressure abated following the release of the Federal Open Market Committee meeting’s minute notes, which was not as hawkish as anticipated.

While the secondary market closed the day in positive territory, trading activity was muted amid the lack of new issuance.

However, topical news and earnings drove some outstanding issues into the spotlight.

Cedar Fair, LP’s 5¼% senior notes due 2029 (B3/CCC+) and SeaWorld Entertainment Inc.’s 5¼% senior notes due 2029 (Caa1/B-) were on the rise after Cedar Fair rejected SeaWorld’s takeover offer.

Wynn Macau Ltd.’s senior notes were boosted in active trading following earnings.

However, AMC Networks Inc.’s 4¼% senior notes due 2029 (Ba3/BB) continued their downward momentum in active trading following its earnings report.

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