Distressed market quiet during shortened session; energy bonds mixed; convertibles see bids

By Paul Deckelman and Rebecca Melvin

New York, Dec. 24 – It was a quiet session in the distressed-debt market on Thursday, with not much real activity seen during an abbreviated session ahead of Friday’s scheduled full market close.

Junk bond traders said that energy names, which had been mostly better over the last two sessions in line with a sharp rise in previously beleaguered world crude oil prices, were seen mixed on Thursday even as crude continued to gain. Traders cautioned, however, that with few large-sized trades taking place, any moves were probably not really representative.

Gainers from the sector included Chesapeake Energy Corp., SandRidge Energy, Inc. and Newfield Exploration Co.

Downsiders included Oasis Petroleum Inc. and Transocean Ltd. as well as California Resources Corp.

In the convertibles market, traders saw some illiquid energy names bid for in thin trading, including Chesapeake, Hornbeck Offshore Services Inc. and Whiting Petroleum Corp.

Away from the energy sphere, AK Steel Holding Corp.’s bonds rose for a second straight session, aided by news of U.S. tariffs slapped on steel products coming from rival China.

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