Junk primary idles; secondary levels off; Shelf Drilling losses mount; DirecTV lower

By Paul A. Harris and Abigail W. Adams

Portland, Me., Oct. 5 – The high-yield primary market sat idle on Thursday and is apt to remain so with the approach of the extended Columbus Day holiday weekend, sources said.

The holiday-abbreviated week ahead also figures to be a quiet one in the primary market, a portfolio manager said.

A New York-based bond trader said that new issuance will likely remain on hold pending some stability in risk-free rates.

High-yield ETFs sustained $1.12 billion of daily cash outflows on Wednesday, their ninth largest outflow of the year and their largest outflow since Aug. 21, the bond trader said.

Meanwhile, it was a flat day in the secondary space with the cash bond market either side of unchanged after the heavy selling earlier in the week.

Shelf Drilling Holdings Ltd.’s 9 5/8% senior secured notes due 2029 (B3/B-/B) remained active with losses continuing to mount in the name.

With the primary pipeline dry, topical news pushed several outstanding issues into the spotlight.

DirecTV Holdings LLC and DirecTV Financing Co. Inc.’s 5 7/8% senior secured notes due 2027 (Ba3/BB) were lower in active trade after news broke that AT&T was considering selling its stake in the company.

The news may have sparked buying interest in DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-), which jumped in heavy volume after heavy selling earlier in the week.

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