Trading subdued after elections; MolyCorp dips ahead of earnings; energy tries to rally

By Stephanie N. Rotondo

Phoenix, Nov. 5 – Trading after the midterm elections was “not overly active,” one distressed debt trader reported.

“I think people are digesting the elections, digesting earnings that are coming out,” he said. And, as the markets have stabilized after the recent volatility, many are “taking the time to sort things out.”

MolyCorp Inc. put out earnings after the bell on Wednesday. Leading up to the numbers, a trader said the company’s bonds were on the weaker side.

In after-market dealings, the company’s equity was taking a sizable hit.

Meanwhile, a trader said that “a lot of those energy names were bouncing back after yesterday’s carnage.” The gains coincided with a gain in oil prices.

Brent crude rose 41 cents to $83.23 a barrel. West Texas Intermediate gained $1.66, or 2.15%, to $78.85.

In the oil and gas realm, Samson Investments Co.’s 9¾% notes due 2020 gained over a point to close at 71. Halcon Resources Corp., however, closed mixed, with the 9¾% notes due 2020 rising nearly a point to 80½ and the 8 7/8% notes due 2021 falling almost half a point to 77¼.

Quicksilver Resources Inc. was also mixed. A trader said the 9 1/8% notes due 2018 closed at 50, down 1½ points, as the 11% notes due 2021 put on 3 points to end at 52.

In the coal sector, Walter Energy Inc.’s 9 7/8% notes due 2020 were seen up over a point at 30½.

In Arch Coal Inc. debt, the bonds were called unchanged to weaker by one trader.

Alpha Natural Resources Inc. paper was meantime unchanged to slightly better, the trader said.

© 2015 Prospect News.
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