Sell-off continues; TransDigm in focus; Uniti, Centene below par; funds lose $4.94 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 12 – The new issue market remained shuttered during an extremely volatile Thursday session.

Credit spreads continued to blow out, equities experienced their worst day since the “Black Monday” market crash of Oct. 19, 1987 and crude oil futures settled in the low $30s.

While the secondary market continued to plummet, liquidity was becoming an issue with trading volumes relatively light, sources said.

TransDigm Group Inc.’s 6¼% senior notes due 2026 were in focus on Thursday with the notes shaving off their premium in high-volume activity.

Mattel Inc.’s junk bonds also sank underwater in active trading.

Uniti Group Inc.’s 7 7/8% senior notes due 2025, which were at one time the best performer of the deals to price in 2020, dropped below par in active trading.

Centene Corp.’s 3 3/8% senior notes due 2030, which priced when the high-yield market was at its peak and 3-handles were commonplace, also tumbled firmly below par on Thursday.

Meanwhile, high-yield mutual and exchange-traded funds continued to hemorrhage cash with $4.94 billion leaving the space in the week through Wednesday’s close, according to the Refinitv Lipper Fund Flow report.

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