‘Better buyers’ seen entering the distressed space; Oasis bonds firm; Freeport declines

By Stephanie N. Rotondo

Seattle, Jan. 28 – The distressed debt market experienced a “bounce-back” on Thursday, according to one trader.

“It certainly felt like guys were generally better buyers,” he said.

That was helping recently notable names such as Sprint Corp. move upward.

A trader saw Sprint’s 7% notes due 2020 rising over a point to 72½.

“Sprint was better by another point or so,” a second trader said.

Even United States Steel Corp. paper was improving, as a trader deemed the 7% notes due 2018 “up a few points,” trading in a 61 to 62 context.

That compared to levels in a 57 to 59 zip code on Wednesday.

Another market source placed the issue at 63 bid, up 3½ points.

U.S. Steel bonds had declined on Wednesday after the steelmaker reported disappointing earnings.

In the energy space, bonds were trending higher as oil prices improved on chatter of OPEC production cuts. But none were as better than Oasis Petroleum Inc., which said that it had raised $160 million via an offering of common stock.

Those bonds were 3 to 5 points better at Thursday’s bell.

While the market overall was in a more positive place, Freeport-McMoran Inc.’s debt was decidedly not.

A trader said the name was “very active” following the “significant” downgrade from Moody’s Investors Service on Wednesday. The rating curb came on the heels of the metals and mining company’s earnings release on Tuesday.

© 2015 Prospect News.
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