Energy bonds mixed as crude rises on Mideast tension; U.S. Steel debt declines on job cuts

By Stephanie N. Rotondo

Seattle, Nov. 24 – As market volume began to dwindle ahead of Thanksgiving, distressed debt investors kept their eyes on commodities.

The oil and gas space was mixed on the day, even as domestic crude prices improved 2.75%, hitting nearly $43 a barrel.

The gains in crude came amid growing tensions in the Middle East after Turkey downed a Russian fighter jet.

A trader said Seventy Seven Energy Inc.’s 6½% notes due 2022 were “quite active,” with “a dozen trades” occurring in Tuesday trading.

He deemed the issue down 7 points “from about a week ago.”

Teck Resources Ltd.’s 4½% notes due 2021 weakened a point to 57½, the trader added.

Chesapeake Energy Corp. meantime followed the trend of the sector.

A trader saw the 3.57% notes due 2019 falling over a point to 43¼, while the 5¾% notes due 2023 gained “almost a point” to close at 42½.

On the up side, Swift Energy Co.’s 7 7/8% notes due 2022 traded up almost a point to 13½, according to a trader.

“They have been pretty active in the low-teens,” the trader said.

Linn Energy LLC’s 6¼% notes due 2019 were also higher, ending up over a point at 24¼.

United States Steel Corp.’s 7% notes due 2018 were getting hit Tuesday after the company announced an idlement of its Granite City Works mill.

© 2015 Prospect News.
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