Junk issuance simmers down; secondary unfazed by Fed; Charter falls; Nielsen weaker

By Paul A. Harris and Abigail W. Adams

Portland, Me., Dec. 14 – New dollar-denominated junk bond issuance for 2022 may have run its course, sources said on Wednesday.

Meanwhile, the secondary space opened strong and closed weaker as the market awaited then digested the Federal Reserve Open Market Committee’s 2 p.m. ET announcement and chair Jerome Powell’s subsequent press conference.

The tone was hawkish and the economic forecast weak with a dot plot plan that places the Federal Fund target rate on a 5% handle for 2023 and a reduction of the GDP forecast to 0.5% growth in 2023 from the previous forecast of north of 1%.

While the market was firmer at the open and softer at the close, the cash bond market was either side of unchanged with no wild swings.

Liquidity in the secondary space continued to diminish with topical news and end-of-year rebalancing the driving forces of activity.

Charter Communications, Inc.’s capital structure was under pressure on Wednesday with its split-rated notes, and subsidiary CCO Holdings, LLC’s senior notes (B1/BB-), falling ½ to 1½ points following an investor meeting.

Neptune BidCo US Inc./Nielsen Holdings plc’s 9.29% senior secured notes due 2029 (B2/B/BB) were weaker in heavy volume after hitting a fresh high the previous session.

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