The recent rally in high yield as well as last week's drive-by deals such as Station Casinos' $200 million of 6 7/8% notes has junk players speculating the forward calendar could reload in coming weeks. And while investors say they would welcome some fresh supply, some market participants say a pick-up in issuance could pressure spreads.
"The lack of a calendar has to have helped the market," said Peter Acciavatti, high-yield strategist at J.P. Morgan. He noted the return of new issuance could limit the near-term upside for continued high-yield spread tightening. "The rally was so violent on the upside. With the lack of new issuance, the only place to buy paper was in the secondary market. If a calendar returns, I think it would push things down," commented one high-yield salesman.
