Distressed market steady pre-holiday; energy names hold in as oil prices weaken again

By Stephanie N. Rotondo

Phoenix, Dec. 24 – With the bond markets closing early for Christmas Eve, Wednesday’s session was a quiet one for the distressed bond market.

“I really don’t think anything went on today,” said one trader, noting that the highest volume leader in all of the high-yield space was Antero Resources Corp., with about $6 million bonds trading.

“For the most part, I think the market is unchanged and there’s very little volume to speak of,” he added. “That’s what you get with Christmas Eve.”

With few players at their desks to get things done, oil and gas names were able to hold their ground, even as oil prices began to drop again amid news of an increase in the U.S. crude oil stockpiles.

West Texas Intermediate crude was back to trading with a $55 handle, while Brent crude fell below $60 again. Both were off nearly 3% on the day.

But for names like SandRidge Energy LLC, there did not appear to be much reaction.

One trader saw very little movement in the name, while another market source pegged the 7½% notes due 2021 at 67½ bid, up just over a point.

Meanwhile, the first trader also saw iron ore producer Cliffs Natural Resources Inc. trading once or twice, but he said there was nothing in the way of price movement.

The markets will be closed Thursday for Christmas.

© 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.