Pacific Gas & Electric in focus; energy rally continues; Hornbeck, Bausch Health gain

By Abigail W. Adams

Portland, Me., Jan. 8 – The high-yield primary market remained dormant on Tuesday with no new deals in sight, despite another strong day for the market, sources said.

The gains continued in the secondary space with crude oil futures continuing their upward momentum and equity markets marking their third consecutive day of gains.

Names were seen better bid with the tone of the secondary space continuing to improve, sources said.

There was a dramatic uptick in activity in the secondary space. However, one name was responsible for the increase in trading volume – Pacific Gas & Electric Co.

While the overall market was up, Pacific Gas & Electric’s bonds were trading sharply lower in high-volume activity after S&P Global Ratings downgraded the struggling utility company to junk.

While Pacific Gas & Electric overshadowed all other activity in the space on Tuesday, California Resources Corp.’s 8% senior notes due 2022 were active and continuing to post gains alongside crude oil futures.

Hornbeck Offshore Services, Inc.’ 5 7/8% senior notes due 2020 were also trading up after the company announced a partial exchange offer.

Bausch Health Cos. Inc.’s junk bonds were active and again posting gains on Tuesday after the company presented at the JPMorgan healthcare conference.

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