Energy surges despite crude decline; Murray rebounds; wireline, Sprint, hospitals, retail stronger

By Paul Deckelman

New York, Nov 16 – Distressed debt and bonds of otherwise underperforming companies and sectors were broadly higher on Thursday, in line with a generally stronger high-yield bond market, which itself seemed to be following the lead of a resurgent equity market.

Oil and gas credits like California Resources Corp. and EP Energy Corp. were solidly better even though crude oil prices continued to fall back.

Murray Energy Corp.’s notes rebounded solidly after plunging on Wednesday in response to news that its planned acquisition of a big stake in fellow coal operator Bowie Resource Partners LLC had fallen through.

There was also strength seen in some recently beleaguered sectors, including wireline telecommunications names such as Frontier Communications Corp., CenturyLink, Inc. and the former Level 3 Communications, now a CenturyLink unit.

Wireless provider Sprint Corp. – whose bonds had recently retreated with the demise of its proposed link-up with sector peer T-Mobile (US) Inc. – were on the rebound.

And strength was seen in such recently underperforming sectors as retailing, such as J.C. Penney Co. Inc., and hospital operators like Tenet Healthcare Corp. and Community Health Systems Inc.

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