Distressed market holds firm; AK Steel paper rises on tariff ruling; energy bonds mixed

By Stephanie N. Rotondo

Seattle, Dec. 23 – The distressed debt market ended with a positive tone on Wednesday.

One trader even remarked that the space “kind of was [busy] for this close to Christmas.”

“It seems like some of the things that have been beaten down were bouncing up a little bit, but on thin volume,” another trader said.

AK Steel Holdings Corp. got a boost after the Commerce Department announced preliminary duties on imported corrosion-resistant steel. The duties were handed down to those imports coming from China, India, Italy and South Korea.

Meanwhile, the oil and gas sector continued to see the bulk of the activity, though the overall performance of the day was mixed.

On the upside, a trader said California Resources Corp.’s 8% second-lien notes due 2022 ended up nearly a point at 52.

The trader also noted that the issue was “the top bond” of the day.

WTI Offshore Inc.’s 8½% notes due 2019 were also better, moving up to 36 from levels around 32½ a week ago, the trader said.

Another gainer was EP Energy LP, whose 6 3/8% notes due 2023 inched up half a point to 48½.

Rounding out the day’s winners, Breitburn Energy Partners LP’s 8 5/8% notes due 2020 jumped 4 points to 19, according to a trader.

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