Distressed bond market gains ground, rallying with stocks; energy boosted by rising oil prices

By Stephanie N. Rotondo

Phoenix, Nov. 21 – After being on a losing streak for most of the week, the distressed debt market had a firmer tone in Friday trading.

“It was a nice market turnaround,” a trader said. “Everything is rosy today.”

“The market in general rallied some,” another trader remarked. “Stocks were up a lot, it rallied with that.”

iHeart Communications Inc. paper was “up a bunch,” according to one trader.

He said the 14% notes due 2021 were “up a couple points” trading “+/-82.”

Another trader deemed the 14% notes a point higher at 81¼, while the 10% notes due 2018 rose nearly a point to 79.

Caesars Entertainment Corp.’s 11¼% notes due 2017 were also gaining strength, rising a point to 79½.

Even energy and related names were improving, as oil prices also climbed into higher territory.

Brent crude oil improved $1.08, or 1.36%, to $80.41, while West Texas Intermediate crude increased 72 cents to $76.57.

Paragon Offshore plc’s 7¼% notes due 2024 gained over 2 points, ending at 64½.

Quicksilver Resources Inc., however, was mixed.

The 9 1/8% notes due 2019 were a point weaker at 45, according to a trader. But he said the 11% notes due 2021 increased 1½ points to 47¾.

Forbes Energy Services Ltd. was one of the day’s few losers, dropping “a lot, just like energy would be,” a trader said.

The trader noted that the 9% notes due 2019 hadn’t traded in two weeks and that they had fallen 8 points to 84¾.

Also in the oil space, Hercules Offshore Inc.’s 8¾% notes due 2021 moved up 2½ points to 54.

In the coal arena, Alpha Natural Resources Inc.’s 6% notes due 2019 moved up over half a point to 48. In sector peer Arch Coal Inc., the 7¼% notes due 2021 inched up to 38¼, as the 7% notes due 2019 put on half a point to 40¾.

© 2015 Prospect News.
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