Market broadly lower; Oasis, other energy credits hit especially hard; primary quiet

By Paul Deckelman and Paul A. Harris

New York, Jan. 13 – The high-yield market was broadly lower on Wednesday, following the lead of equities, which slid amid investor worries about weak energy prices, lackluster U.S. corporate earnings and continued stagnation in the global economy.

As has been the case so often in recent weeks and months, the downside ride was led by energy credits – even though domestic crude oil prices seemed to steady after a long drop, posting their first gain for the year, albeit a small one.

That was not enough to help the likes of Oasis Petroleum Inc., whose 2022 notes were both the most active issue and the biggest loser of the day in Junkbondland.

Other familiar downside names from that same oil and natural gas exploration and production company sector included Chesapeake Energy Corp., California Resources Corp. and EP Energy Corp.

The weakness carried over into non-energy names as well. One such loser was metals mining company FMG Resources.

Even away from energy and commodities names, weakness was widespread. American Axle & Manufacturing Inc.’s bonds and shares plunged after the automotive components manufacturer released disappointing earnings guidance.

Primary activity remained muted, with no new U.S. dollar-denominated deals seen having been announced or priced.

Statistical measures of junk market performance turned lower across the board on Wednesday, after having been mixed over the previous three sessions.

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