Sell-off intensifies; Science Applications soars; funds see record $5.13 billion outflow

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 5 – Quiet returned to the domestic high-yield primary market on Thursday with the forward calendar thin as volatility continues to whipsaw markets.

The market, in general, sank 1 to 2 points with the tone of the sell-off becoming more dramatic than it had been previously, sources said.

However, there were still buyers in the market and sellers who were unwilling to hit low bids, a source said.

“In some ways, things are at a bit of a standstill,” the source said.

Despite the weakness in the market, the deals to price during Wednesday’s session were performing well.

Science Applications International Corp.’s 4 7/8% senior notes due 2030 (B1/BB-) maintained their large premium in active trading.

Charter Communications Inc.’s newly priced 4½% senior notes due 2032 were well above their issue price in high-volume activity.

While CCO Holdings LLC and CCO Holdings Capital Corp.’s 4½% senior notes due 2030 were volatile following Wednesday’s add-on, the notes stood poised to close the day above their reoffer price.

High-yield mutual and exchange-traded funds continued to hemorrhage cash with the combined funds seeing a record $5.126 billion outflow through Wednesday’s close – the fourth largest on record, sources said.

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