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U.S. High Yield Bonds Weaker As Greece Weighs On Broad Markets

The U.S. high-yield bond market is weaker this morning on limited liquidity and low trading volume as a breakdown in talks between Greece and its creditors has sparked the increasing probability of default. More bid-wanted lists are making the rounds, while the high-yield cash market is down about a half to one point, sources indicate.

Top trading names this morning include European auto-parts supplier ZF Friedrichshafen, with its 4.75% notes due 2025 notes dropping half a point, to 97, trade data show. The $1.5 billion issue was placed in late April at 99.02, as part of the company’s acquisition of TRW Holding.

Recently priced secured energy issues are off a point or more this morning as crude-oil prices edge lower in reaction to the situation in Europe. SandRidge Energy 8.75% notes due 2020 are down a point, to 89.5. As well, Halcon Resources 8.625% notes due 2020 have slipped another point today, to 97.5, after falling more than two points last week, trade data show.

The Chemours Company 6.625% notes due 2023 are also active and lower, falling a point, to 96.75. The issue priced at par in May as part of a three-part offering.

The CDX HY opened down one point this morning but recovered some of that, and is now off three-eighths of a point, at 106.40/106.52.

In the primary market, SS&C Technologies came out with price guidance this morning, and StandardAero is targeting pricing for tomorrow, sources indicate. Full calendar details are available online to subscribers at LCD U.S. HY Forward Calendar. –Joy Ferguson

For high yield bond news, analysis, check out www.highyieldbond.com, a free site powered by S&P Capital IQ and LCD to promote the asset class. 

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