Primary stays becalmed; new Tesla tops actives, supermarkets still pressed; energy quiets

By Paul Deckelman and Paul A. Harris

New York, Aug. 29 – For yet another session – the seventh in a row – the high-yield primary market remained quiet on Tuesday, with no deals expected ahead of the looming Labor Day holiday break in the United States.

Tesla, Inc.’s recently priced new issue was once again active – in fact, the busiest high yield credit of the session – with the electric car manufacturer’s bonds seen retreating slightly after having risen over the past few trading days.

Traders also saw some activity in office supply retailer Staples, Inc.’s recently priced new deal, with the notes having firmed slightly.

Away from those recently priced deals, it was another tough day for supermarket issues such as Albertsons Cos. LLC, Fresh Market, Inc. and Ingles Markets Inc. in the wake of price-cutting by sector peer Whole Foods Markets, now a division of retailing giant Amazon.com.

Cloud computing company Rackspace Hosting Inc.’s bonds were seen losing ground.

Energy sector names were mostly quiet as market participants assessed the impact that Hurricane Harvey’s damage along the Texas Gulf Coast will have on the U.S. energy industry.

Statistical market performance measures turned mixed on Tuesday, after having been stronger all around on Monday, its third straight higher session. The indicators had also been mixed over the previous four straight sessions before that.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.