Junk primary quiet as 2018 opens; CalRes rises with crude; Chesapeake up with gas prices

By Paul Deckelman and Paul A. Harris

New York, Jan. 2 – It was back to work in Junkbondland on Tuesday, with the year-end holidays done with and a new month, quarter and year ahead.

But market participants reported a very quiet session, with little or nothing happening right now in the primary sphere – although fast-food chain operator Arby’s Restaurant Group Inc. could serve up a new deal as soon as next week, part of a projected $15 billion-to-$20 billion January deal pipeline.

In the secondary realm, traders saw some activity – though not much price movement – in such recently priced names as drug maker Valeant Pharmaceuticals International Inc. and toy manufacturer Mattel Inc.

But the action was in the energy sphere, among such names as oil and natural gas exploration and production operators California Resources Corp. and Chesapeake Energy Corp.

The former’s benchmark bonds – continuing a recent surge – firmed smartly as crude oil prices opened the new trading year at their highest point since 2014, pushed up by supply concerns stoked by the current political unrest in major oil producer Iran.

The latter company’s paper meanwhile popped along with natural gas prices, which are rallying on investor hopes for big demand, as much of the United States remains locked in an early-winter deep freeze.

Metals miner Cleveland Cliffs Inc.’s bonds rose, along with its shares, as iron ore prices were pushed up by an expected pickup in Chinese demand this year.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.