Coinbase is crypto-hot; Cheniere Energy trades up in junk secondary; Gap tranches improve

By Paul A. Harris and Cristal Cody

Tupelo, Miss., Sept. 14 – High-yield traders apparently do want a piece of the popular cryptocurrency market, as evidenced in a massively oversubscribed offering on Tuesday from crypto trader Coinbase Global, Inc.

Alternatively, buyers are simply hungry for deals in a September market that has not yet lived up to the hype.

The secondary junk bond market tone was softer with oil prices only modestly better and indexes mostly flat to lower by the close.

“Early on, it was very strong in higher-grade high-yield energy, but then the whole market sort of turned around. Oil just went to sleep.”

Crude oil prices edged up over the day. West Texas Intermediate crude oil benchmark futures for October deliveries added 1 cent to settle Tuesday at $70.46 a barrel.

In the secondary market, Cheniere Energy Partners, LP’s new 3¼% senior notes due January 2032 (Ba2/BB/BB+) were seen going out about 1 point to 1¼ points better than issuance.

Gap, Inc.’s $1.5 billion of senior notes (Ba3/BB) priced in two tranches on Monday traded about 1 point to 1½ points higher on Tuesday.

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