Oil, gas rise as oil prices continue rally; Caesars holders support plan; JCPenney firms

By Stephanie N. Rotondo

Phoenix, Jan. 8 – The distressed debt market was “raging today,” a trader reported Thursday.

The gains in the bond market came as the Dow Jones industrial average jumped 324 points and the S&P 500 index erased all of the loses incurred so far this year.

The strength of the market was likely also helped by another gain in oil prices, which in turn helped oil and gas credits move higher.

“All oil has to do is not go down and they rebound a little,” a trader said.

Caesars Entertainment Corp. was meantime in the news, as the company announced that it had received over 50% approval from senior secured noteholders on its restructuring plan that would put the operating unit into bankruptcy no later than Jan. 20.

A trader noted that while the bonds were trading actively, they were only slightly better to unchanged on the day.

Elsewhere, J.C. Penney Co. Inc.’s debt was “pretty active,” according to a trader, as the company announced more store closures and job cuts.

Earlier in the week, the retailer had released preliminary holiday season same-store sales, which improved 3.7% year over year.

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