Energy sees modest moves as oil slumps; Valeant actively traded without much movement

By Colin Hanner

Chicago, Oct. 20 – After Wednesday’s voluminous gains in the energy sector, distressed debt took a respite from the action on Thursday after housing reports and unemployment initial claims set off a series of downturns.

“It was another dismal day in the trenches,” said one trader.

“Volume wasn’t very high,” in distressed debt trading, a market source said, and it was the “new deals that dominated in regular high yield today.”

WTI crude was down 1.17, or 2.27%, to 50.43 at close. Brent crude was down 1.30, or 2.47%, to 51.37.

Peabody Energy Corp. saw some movement in the day’s trading, with a trader calling activity “not as active” and “a smidge softer” than it has been in the weeks past.

One market source said the 6¼% notes due 2021 traded down ½ to 42½. The 10% notes due 2022 were up a point to 64½, and the 6% notes due 2018 were up ¼ to 43¼.

Chesapeake Energy Corp. conducted its first analyst day in two years on Thursday, and the market responded favorably, even as the company projected flat 3% growth in 2016 and 5% flat growth in 2017, per their investor presentation.

The company’s 4 7/8% notes due 2022 traded up ¼ to 87, a trader said.

Valeant Pharmaceuticals International was “the most active in the distressed area,” a market source said. The company’s 6 1/8% notes due 2025 traded 83½, down 1/8 of a point.

© 2015 Prospect News.
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