CDX opens ½ point lower; California Resources bonds ‘mimic’ crude, hover above all-time lows

By Paul A. Harris

Portland, Ore., Jan. 5 – The CDX North American High Yield Index Series 23 was down a solid ½ point in fairly light trading at mid-morning in New York, according to a trader.

Bonds of California Resources Corp. continued to “mimic” crude oil prices, the trader said, noting that the barrel price of West Texas Intermediate continued to fall and was at $51 at mid-morning.

The California Resources 6% senior notes due Nov. 15, 2024, a big liquid issue, were at 81 bid, 82 offered, down 2½ points on the day, the trader said, noting that the bonds changed hands in one or two trades on Friday, and closed that session at 84¼ bid.

The $2.25 billion deal priced at par in a massive $5 billion amount of issuance that came in three bullet tranches (Ba1/BB) on Sept. 11, and traded as high as 104½ bid in the immediate aftermath.

Among high-beta names, iHeartCommunications, Inc.’s 14% PIK notes due 2021 were ¾ point lower and trading around 81 bid, the trader said.

All was quiet in the primary market.

A Chinese high-yield issuer, CAR Inc. is getting set to roadshow a dollar-denominated Rule 144A and Regulation S offering of senior notes (Ba1/BB+/BB+) via Credit Suisse, Standard Chartered and Deutsche Bank, according to a London-based sellside source.

The deal will tour Europe, but participation among institutional high-yield accounts, if any, will be limited, the sellsider said.

© 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.