Restart of primary eyed; PG&E rebounds; energy rally continues; Tesla active

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 9 – The primary market remained dormant on Wednesday. However, with the tone of the high-yield market continuing to improve there is speculation some new deal activity could be near at hand.

Meanwhile, Wednesday marked another strong day for the secondary space with the energy sector continuing to lead the overall market higher.

Several oil and gas names posted multi-point gains as crude oil futures catapulted above the closely watched $50 threshold on Wednesday.

California Resources Corp.’s 8% senior notes due 2022, Chesapeake Energy Corp.’s 8% senior notes due 2025 and 8% senior notes due 2027, and Denbury Resources Inc.’s 5½% senior notes due 2022 were among them.

The secondary space continued to see heavy trading volume on Wednesday with Pacific Gas & Electric Co.’s junk bonds leading the charge.

After trading sharply lower during Tuesday’s session following an S&P downgrade to junk status, the bonds from the struggling utility company were rebounding during Wednesday’s session.

Tesla Inc.’s 5.3% senior notes due 2025 were making slight gains in active trading on Wednesday with the notes buoyed by optimism surround U.S.-China trade talks as the electric car manufacturer begins building its new factory in Shanghai.

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