Energy, travel names lead junk bond trading losses; Weatherford, Nabors, Carnival down

By Paul A. Harris and Abigail W. Adams

Portland, Me., Nov. 30 – With no new issues pricing on the last day of November, selling pressure returned to the high-yield secondary space following hawkish comments from Federal Reserve chair Jerome H. Powell.

Powell announced on Tuesday that bond tapering would come sooner than previously anticipated and the word transitory would no longer be used to describe inflation.

The comments sparked a sell-off in risk assets with equity indexes each dropping almost 2% and the cash bond market down about ½ point.

Travel and energy, the names that led Monday’s rebound from Black Friday, were among the hardest hit in Tuesday’s sell-off.

Carnival Corp.’s senior notes gave back some of their gains from the previous session.

Energy names were particularly hard hit as crude oil futures plummeted more than 5%.

Weatherford International Ltd.’s 8 5/8% senior notes due 2030 (B3/CCC+) sank below par for the first time since pricing.

Nabors Industries, Inc.’s junk bonds were under pressure with the drilling contractors’ recently priced 7 3/8% senior priority guaranteed notes due 2027 (B3/B-/B) hitting their lowest level since pricing.

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