| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2022 > News item |
Morning Commentary: Comstock notes slide as gas prices tank; funds see big outflows
By Paul A. Harris
Portland, Ore., Dec. 20 – The Comstock Resources, Inc. 6¾% senior notes due March 2029 were down around 2 points at 92½ bid, 92¾ offered on Tuesday morning as natural gas prices fell dramatically, according to a bond trader in New York.
The unit price of natural gas for January 2023 delivery was down 7½% at mid-morning, at $5.41.
Europe, which is girded for high natural gas prices amid supply that has been crimped by ongoing geopolitical upheaval related to Russia's invasion of the Ukraine, has seen a milder-than-expected heating season thus far, the trader remarked.
Also, more supply is becoming available, the source added.
The broad high-yield bond market opened 1/8 point lower on Tuesday amid thin pre-holiday liquidity, traders said.
Much of the morning's meager amount of activity was taken up in portfolio trades, a source remarked.
With the Dow Jones industrial average up 0.33% at mid-morning, the iShares iBoxx $ High Yield Corporate Bd (HYG) share price was down 0.24%, or 18 cents, at $74.04.
Among bonds of late 2022 vintage, the Chart Industries Inc. 7½% senior secured notes due January 2030 (Ba3/B+) were down 1/8 of a point, changing hands at par 1/8 in a portfolio trade, a trader said.
They priced at 98.661 to yield 7¾% in a $1.46 billion tranche on Dec. 8.
The primary market remained idle on Tuesday morning and is expected to remain that way until January, sources say.
Fund flows
The dedicated high-yield bond funds sustained $914 million of net daily cash outflows on Monday, according to a market source.
High-yield ETFs saw $879 million of outflows on the day.
Actively managed high-yield funds sustained $35 million of outflows on Monday.
The combined funds are tracking $2.1 billion of net outflows for the week that will conclude with Wednesday's close, according to the market source.
© 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.