Torrent of issuance prices in junkland; Rakuten hits new low; Altice France down again

By Paul A. Harris and Abigail W. Adams

Portland, Me., April 16 – The Tuesday session generated an absolute torrent of new issue news in both the dollar- and euro-denominated high-yield primary markets.

Meanwhile, it was another soft day in the secondary space on Tuesday with Federal Reserve chair Jerome Powell signaling a higher-for-longer rate environment in the wake of strong inflationary data.

The market dramatically repriced since last Wednesday’s Consumer Price Index report with the market now questioning if the Fed will cut rates, not when.

While the market remains new issue focused with the primary market still very much open, the strong performance of new paper seen in the first quarter has started to wane.

Rocket Software Inc.’s downsized Tuesday offering was “not a good sign” for the market, a source said.

From recent deals, Rakuten Group Inc.’s 9¾% senior bullet notes due 2029 (BB), a heavily sought after deal that made strong initial gains in the aftermarket, had heavy selling pressure on Tuesday with the notes falling below issue price for the first time since breaking for trade.

While trading volume remained thin outside of new and recent issues, earnings and topical news continued to spark activity in outstanding issues.

Altice France SA’s senior secured notes were down in active trade as creditors band together ahead of debt negotiations with the company.

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