Primary silent; trading thin; California Resources gains; Tesla active; L Brands drops

By Paul A. Harris and Abigail W. Adams

Portland, Me., Jan. 2 – The primary market remained dormant in the new year with no hints as to when it would restart.

However, there are some merger and acquisition deals expected in the first quarter, sources said.

Meanwhile, the secondary space was firm at the start of the new year after a sloppy close to 2018.

However, the illiquidity that characterized the final weeks of 2018 continued on Wednesday with many on the sidelines evaluating their next steps, a market source said.

California Resources Corp.’s 8% senior notes due 2022 continued its upward momentum on Wednesday as crude oil futures rebounded.

Tesla Inc.’s 5.3% senior notes due 2025 were active and trading off slightly after the electric car manufacturer announced a price cut and missed analyst projections for Model 3 sedan deliveries in the fourth quarter.

L Brands Inc.’s 5¼% senior notes due 2028 were also trading down after an analyst cut the price target for the company’s stock.

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