Market continues to firm; ArcelorMittal prices euro deal; junk funds lose $922.2 million

By Paul Deckelman and Paul A. Harris

New York, Jan. 8 – The high-yield market made it two in a row on Thursday, mounting a second consecutive stronger session.

Junkbondland was helped by a surge in equities, which also rose solidly for a second straight session, a rise driven by expectations the United States economy will continue to show improvement and investor hopes of easing action from European central bankers.

Oil prices again rose, though modestly, continuing to give a boost to many recently battered names in that sector, among them SandRidge Energy Inc., Halcon Resources Corp. and Midstates Petroleum Co. Inc.

Cliffs Natural Resources Inc. was another gainer.

And non-energy names like Sprint Corp. were also seen higher.

The high-yield primary market saw its first deal of the new year – although that euro-denominated pricing from steelmaker ArcelorMittal came off the investment-grade desks and had a typical execution.

But a more traditionally styled dollar-denominated deal could be on tap for Friday, when NCI Building Systems, Inc. is expected to bring a $250 million eight-year offering to market.

Statistical market-performance measures were higher across the board for a second consecutive session on Thursday.

However, another statistical measure – flows of money into and out of high-yield mutual funds and exchange-traded funds, which is considered a reliable barometer of overall junk market liquidity trends – were solidly negative for a sixth successive week.

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