Healthcare sector mixed after equities rally; Valeant up, Concordia down; Intelsat rises

By Colin Hanner

Chicago, Dec. 7 – Equity markets surged on Wednesday, and with them came several distressed bond market movers, including the healthcare sector.

“We almost closed 300 points up on the Dow,” a trader said. “The same kind of thing was happening in the bond market, a lot of bonds were up. It certainly was the case in the healthcare sector.”

Another trader had a differing view of the market.

“There was not a lot of price action [in distressed bonds],” the trader said. “Based on the way the market rallied so much, it seemed like they would creep up and nothing would be around on the offer side.”

The trader said new issues, like Chesapeake Energy Corp., were filling echo chambers in the high-yield bond market.

Healthcare equites were resoundingly down during the session, fueled by a Time magazine article that quoted Donald Trump saying he wants to lower drug prices.

Yet, of those healthcare names that saw upward movement in its bonds was Valent Pharmaceuticals International Inc., which posted gains in several of its notes.

However, Concordia International Corp. was down, several points in one case. A trader said a recent article from a financial publication may be stirring some movement in the notes.

Luxembourg-based Intelsat SA continued to trade up after a recent exchange deal was reached on Monday.

Oil slipped for the second-straight session, fueled by continued speculation on the most recent Organization of Petroleum Exporting Countries deal.

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