Midday Commentary: High-yield trading firm on Friday as attention shifts to secondary market

By Paul A. Harris

Portland, Ore., Oct. 4 - The high-yield market had a firm direction on Friday morning, according to a trader based in New York.

"There's not much of a calendar, so attention has shifted to the secondary market," the trader said.

"The Deutsche Bank conference zapped a ton of liquidity from the market this week," the source added, referring to the Deutsche Bank Leveraged Finance Conference, which took place this week in Scottsdale, Ariz.

The new CNH Capital LLC 3¼% senior notes due Feb. 1, 2017 (expected Ba1/confirmed BB) were trading at par 7/8 bid, 101 1/8 offered on Friday morning, according to a high-yield portfolio manager.

The $500 million issue came at par on Thursday.

On deck for Friday's primary market is the downsized TMS International Corp. $275 million offering of eight-year senior notes (B3/B-).

The deal, which was trimmed from $300 million, was talked on Thursday to yield in the 7¾% area, 25 basis points below the tight end of earlier guidance of 8% to 8¼%, sources said.

Goldman Sachs, JPMorgan, HSBC and Deutsche Bank are the bookrunners for the buyout deal.

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