Morning Commentary: DISH up 1 point on possible deal with Amazon; ETF inflows continue

By Paul A. Harris

Portland, Ore., June 2 – The high-yield bond market improved by ¼ point in the early going on Friday, sources said.

With the Dow Jones industrial average up 1.6% at mid-morning, the iShares iBoxx $ High Yield Corporate Bd (HYG) share price was up 0.5%, or 37 cents, at $74.57.

The recently minted Mobius Merger Sub, Inc./MoneyGram International Inc. 9% senior secured notes due June 2030 (B2/B/B+) were up ¼ point on the morning at 84 bid, 85 offered, a trader said.

The upsized $500 million issue priced at 83 to yield 12.742% on Wednesday.

The DISH Network Corp. 11¾% senior secured notes due November 2027 were up a point, changing hands at 97¾, the trader said.

That price improvement comes on the heels of news that Amazon.com Inc. is in talks with wireless carriers to facilitate providing mobile telephone services to Amazon Prime customers.

The Wall Street Journal recently reported that DISH has been in talks to sell wireless plans for its new mobile phone service through Amazon.

DISH’s share price (Nasdaq: DISH) was up 22.85% on the morning.

The primary market remained idle on Friday morning.

Heading into the weekend the active forward calendar features a single deal.

Jailhouse telecom Aventiv Technologies LLC is understood to still be in the market with a $400 million offering of four-year first-lien senior secured notes (B3/B), a source said on Friday morning.

However, it has been radio silence for well over a week on the deal, which was first announced to the market in early May.

Fund flows

High-yield ETFs saw hefty daily cash inflows of $897 million on Thursday, according to a market source.

Those follow the $334 million of daily inflows seen by the ETFs on Wednesday.

Meanwhile actively managed high-yield funds sustained $50 million of outflows on Thursday, the source said.

News of Thursday’s daily fund flows trails a Thursday afternoon report that the combined funds sustained $2.174 billion of net outflows in the week to the Wednesday, May 31 close, according to fund-tracker Refinitiv Lipper.

That was the largest weekly outflow since the beginning of March, and the fourth outflow in five weeks, totaling $4.7 billion, according to the market source.

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