Oil, gas bonds in focus, playing ‘catch up’ as oil prices surge higher; sector ends mixed

By Stephanie N. Rotondo

Seattle, Jan. 30 – Oil prices surged in the final hour of Friday trading, according to a trader, but that strength was only slightly felt in the distressed debt arena.

“We’re playing catch up now,” he said.

California Resources Corp.’s bonds were “up immediately by a couple points” as oil spiked, the trader noted. He saw the 6% notes due 2024 in an 82 to 83 context, versus previous levels around 81.

The 5½% notes due 2021 were placed around 85, up from 84, while the 5% notes due 2020 pushed up to 86¼ bid, 87 offered.

Comstock Resources Inc. was also higher. A trader pegged the 7¾% notes due 2019 at 51½, up almost a point. The 9½% notes due 2020 closed at the same level, up over a point on the day.

SandRidge Energy Inc. was another name that was trending higher, but that particular name has been moving into higher territory all week. A trader called the 7½% notes due 2021 almost a point better at 70.

But not all oil and gas credits were faring better during the session.

CGG SA, a seismic data provider to the oil industry, saw its 6½% notes due 2021 slipping half a point to 77.

Hercules Offshore Inc.’s 7½% notes due 2021 meantime closed around 34¾, down 10 points from the last trades in December, a trader said.

© 2015 Prospect News.
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