Junk bond primary reopens; Coinbase surges; Laredo falls; funds add $2.93 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 4 – After spending a month and a half in a near-vegetative state the high-yield new issue market not only awakened on Thursday, but burst into the middle of the ring punching.

Meanwhile, the secondary space continued to add to its gains as falling oil prices, better-than-expected earnings and strong inflows helped sustain a rally.

While the market remained firm, trading volume was thin with earnings and topical news the drivers of activity in the space as market players awaited the deals in the pipeline to break for trade.

CCO Holdings’ 5 3/8% senior notes due 2029 were slightly weaker in active trading on the heels of its new offering on Thursday.

Coinbase Global, Inc.’s senior notes (Ba2/BB+) surged in heavy volume following news of a new partnership with BlackRock Inc.

Laredo Petroleum, Inc.’s senior notes were down following earnings, despite besting analyst expectations.

The weakness in the notes was most likely due to falling oil futures, which settled below levels Laredo used to determine future guidance.

Strong inflows continued with high-yield mutual and exchange-traded funds adding $2.934 billion in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow Report.

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