January supply eyed; energy names skyrocket; Chesapeake’s new secured notes in focus

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 3 – While the domestic high-yield primary market opened 2020 quietly, that is expected to change in the coming week.

Floodgates are expected to open during the Jan. 6 week with the first month of 2020 rumored to be a big one for new issuance.

Meanwhile, the secondary space was soft on Friday alongside equities although trading volume remained thin, sources said.

While the overall market was soft, the energy space was firm with several names skyrocketing as crude oil futures rose amid escalating tensions in the Middle East.

The junk bonds of California Resources Corp., Whiting Petroleum Corp., Oasis Petroleum Inc. and Moss Creek Resources Holdings were among the major gainers of Friday’s session.

However, Chesapeake Energy Corp.’s newly issued 11˝% senior notes due 2025 were the most actively traded energy bond in the secondary space.

The notes were posting gains after trading at a deep discount since they were issued in a distressed debt exchange in mid-December.

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