California Resources lower amid oil rise; Valeant unchanged; Walter Investment higher

By Colin Hanner

Chicago, June 6 – Activity was less news-driven on Tuesday in the distressed debt arena than it was Monday, with activity dropping off for several issues that had previously catapulted to the top of the most-active list.

Tenet Healthcare Corp. was capturing the bulk of the attention in the broader high-yield market following the pricing of more than $5 billion in new issues from the hospital group on Monday, a market source said.

Breaking from a recent trend, crude oil was lifted on the day ahead of a weekly Energy Information Agency report that is suggested to show another week of lower U.S. crude stockpiles. Movement was mixed as a result, with California Resources Corp. breaking from the trend of following the price fluctuation of the broader market.

A media report said that Valeant Pharmaceuticals International Inc. was in talks to sell off several billion dollars of its assets, though bonds were nearly unchanged on the day.

A report by Citron Research was short-lived for Mallinckrodt Pharmaceuticals, which saw virtually no trading in an issue that came under fire yesterday after the research firm claimed the company was price-gouging one of its drugs. Another issue traded down marginally.

Mortgage servicing company Walter Investment Management Corp. was again higher on Tuesday following a decision to hire a debt restructuring adviser.

And Intelsat SA was lower across several issues, though volume trended lower on the session.

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