| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2016 > News item |
Distressed debt space closes higher as oil prices gain; Chesapeake up; Intelsat steady
By Stephanie N. Rotondo
Seattle, Sept. 2 – The distressed bond market finished the week in the black on Friday, helped in part by a gain in crude oil prices.
The commodity gained ground in early trading after Russian president Vladimir Putin said he was ready to act on a production freeze with OPEC and that he would consider an exception to such a deal for Iran.
For its part, Iran has refused to accept any production freeze proposals, as it aims to get back to pre-sanction levels.
A weaker dollar also helped oil prices rise. The dollar was pressured by a fresh jobs report that showed nonfarm payrolls increased by 151,000 in August, below the 180,000 gain analysts had expected. Given the weaker-than-expected job growth, the market was betting that the likelihood of an interest rate increase at the next Federal Reserve policy meeting – scheduled for Sept. 20 to Sept. 21 – was low.
Domestic crude ended up 2.45% at $44.23 a barrel.
But while the market had a firm feel, a trader commented that there was little in the way of activity.
“The market had very little reaction to the employment data,” he added.
Still, crude’s improvement did results in some slight gains for energy names such as Chesapeake Energy Corp.
At one desk, the 8% second-lien notes due 2022 were seen up about half a point on the day, closing at 95½ bid, 95 5/8 offered.
At another desk, the 6 5/8% notes due 2020 were also called half a point higher at 89½ bid.
Among other go-to names, Intelsat SA was little moved during the session.
A market source placed the 7¼% notes due 2020 in a 78 to 78¼ context, which was considered unchanged for the day.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.