Little movement on charges against Valeant execs; Peabody reacts to China’s coal expansion

By Colin Hanner

Chicago, Nov. 17 – Several distressed names rode Wednesday’s momentum into Thursday, the coal space was shaken with news out of China and oil news stirred some names in both directions during the day’s trading.

Valeant Pharmaceuticals International Inc. was one of the more recognizable names in market news on Thursday after two former executives were charged with a variety of counts, including wire fraud and conspiracy to launder money. The company’s notes did not take shocks as some traders had expected.

In energy, the coal sector may have been brought down a peg to news out of China reacting to surging coal prices and a major miner expressing that iron ore and coking coal would cool down after its revival in 2016.

Peabody Energy Corp. and Murray Energy Corp. took a dive in several bonds.

Oil fluctuated on Thursday, with a rise in the morning due to a stabilizing tone in Organization of Petroleum Exporting Countries’ sentiment toward supply cut talks at the end of the month. Oil fell after Federal Reserve Chair Janet Yellen signaled interest rates hike would occur soon, prompting a rise in the dollar and a selloff of commodities.

California Resources Corp. saw a rise in two of its distressed bonds, while EP Energy Corp. traded down after modest gains on Wednesday.

Community Health Systems Inc. continued to see some positive movement, along with several other high-yield hospital groups, and Intelsat SA climbed higher.

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