CalRes notes active on investment news; oil futures dip drives distressed energy trading

By James McCandless

San Antonio, Feb. 8 – Distressed debt trading on Thursday was described as limited, traders said, despite the ongoing equity market correction.

California Resources Corp. notes took multi-point swings as stakeholders reacted to Wednesday’s news that the company would be entering into a $750 million midstream joint venture with investment firm Ares Management.

A downward trend continued for issues in FirstEnergy Corp. after a ratings correction Wednesday in senior unsecured notes in two of the company’s subsidiaries.

Another loss in oil futures contributed to a bevy of activity in distressed oil and gas names. Rex Energy Corp., Jones Energy, Inc., and Northern Oil and Gas, Inc. made up much of the volume in the energy space.

Paper in telecom names Frontier Communications Corp. and Intelsat SA maintained high activity levels. Mallinckrodt plc’s high volume continued in the pharmaceutical space.

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