Junk primary market dormant; energy names rebound; Altice active; Mallinckrodt drops

By Abigail W. Adams

Portland, Me., Nov. 26 – The domestic primary market remained dormant on Monday with no new deals launching and nothing on the forward calendar.

While new deal activity continued to be sidelined by the volatility that roiled markets throughout late October and November, the secondary space was firm on Monday with equities in the green and crude oil futures rebounding.

The market was up about ¼ to ½ point on Monday, sources said.

With crude oil futures jumping more than 3% in intraday trading, energy names saw a slight rebound.

California Resources Corp.’s 8% senior secured second-lien notes due December 2022 were among the most actively traded issues in the secondary space with the notes up about ½ point, sources said.

Weatherford International Ltd.’s junk bonds also saw active trading and were up ¾ to 1 3/8 points.

Calpine Corp.’s 5¾% senior notes due 2025 also climbed alongside the broader energy sector.

Altice SA’s 7¾% senior notes due 2022 were active with the notes coming in after a post-earnings report jump last week.

Mallinckrodt plc’s junk bonds dropped in active trading on Monday after short-seller Citron Research claimed the pharmaceutical company failed to disclose unsuccessful clinical trial results.

Meanwhile, high-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall liquidity trends in the junk market – saw outflows of $2.191 billion for the week ended Nov. 21, according to fund-flow statistics generated by AMG Data Services Inc.

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