Energy bonds continue rise as crude prices firm again; healthcare hurting; Toys trades up

By Paul Deckelman

New York, June 26 – Traders in the bonds of distressed or underperforming companies saw a generally firm market on Wednesday, in line with a mostly bullish tone in the larger high-yield market.

One of the key components in that rise was strength among energy credits such as California Resources Corp., EP Energy Corp. and Continental Resources Corp., which were helped by a third consecutive session of hefty gains in world crude oil prices. Crude strengthened against a backdrop of greater-than-expected inventory drawdowns, as reported by the U.S. Energy Information Administration.

Traders meantime saw continued weakness among hospital operators like HCA Inc., Tenet Healthcare Corp. and Community Health Systems Inc.; the sector was seen under pressure in response to disappointing earnings that HCA reported on Tuesday, as well as the uncertainty swirling around the fate of existing healthcare laws in the United States and their possible replacements.

Elsewhere, Toys R Us Inc.’s bonds were seen posting solid gains, although traders could not readily explain the rise in the specialty retailer’s paper.

Traders saw gains in iHeart Communications Inc. paper, and in the various issues of Intelsat SA.

© 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.