Junk breaks out of two-day Brexit slump, though primary remains on hiatus; energy names up

By Paul Deckelman and Paul A. Harris

New York, June 28 – After two days on the downside following the surprising outcome of Britain’s “Brexit” vote, the junk bond market was aching for a turnaround – and that’s exactly what it got.

Following the lead of stocks and other risk assets, high yield broke out of its two-session slump on Tuesday and moved decisively higher.

In a reversal of the pattern seen over the previous two days, most issues were seen up at least ˝ point or so, and some of the larger, more liquid names gained multiple points.

Sizable gainers on the day included such names as Western Digital Corp., First Quantum Minerals Ltd., Calumet Specialty Products Partners LP and Tronox Inc.

Energy issues – hard hit over the previous two sessions as oil prices slid in line with a stronger dollar – were seen solidly on the upside in line with improved crude prices, including California Resources Corp. and Freeport McMoRan Copper & Gold, Inc.

Statistical market performance measures turned higher across the board on Tuesday, after having been lower all around for a second consecutive session on Monday. It was their second stronger session in the last four trading days.

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