Oil rebound boosts most energy bonds; GM unit brings giant-sized split-rated deal

By Paul Deckelman and Paul A. Harris

New York, Jan. 7 – The high-yield market turned firmer on Wednesday, with its recently embattled oil and natural gas exploration and production segment leading the way, in line with a rebound in equally battered world crude oil prices.

Junkbondland energy space names such as Halcon Resources Corp. and Linn Energy LLC were among the notable gainers.

However, one prominent energy credit was missing from the list of better finishers: California Resources Corp., whose bonds started out smartly but had given back all of the day’s gains, and then some, by the time things wrapped up.

While the energy sector was in the forefront, the day’s stronger tone also helped non-energy credits such as J.C. Penney Co. Inc., SuperValu Inc. and iHeart Media Inc. Department store operator J.C. Penney was out with strong holiday sales numbers, while supermarket company SuperValu released positive quarterly results.

Primaryside players meantime reported another day without any actual junk bonds having been priced – although the split-rated General Motors Financial Co. Inc. did come to market with a $2.25-billion three-part quick-to-market offering.

Those new notes were seen having firmed a little in preliminary aftermarket activity.

Statistical measures of market performance moved higher across the board on Wednesday after having dropped all around in each of the previous two sessions.

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