LPC: Mining loans post stellar gains in US secondary market

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NEW YORK Mining companies have been some of the best performing credits in the US secondary loan market this year as commodity prices recover and the outlook improves for the coal industry as president-elect Donald Trump promises a spending spree to upgrade the country’s infrastructure.

Arch Coal is the biggest gainer in the US secondary market overall for 2016 so far, according to Thomson Reuters LPC data, with a 70.3 point rise from lows earlier this year of 28% of face value to 98.5%. The company emerged from Chapter 11 bankruptcy protection in October after reducing its debt.

Fairmount Santrol is the third-biggest US gainer this year, and shows the second-biggest gains in the mining sector of 51.5 points, rising from 44 to 95.5.

Loans for mining companies have been trading way below other sectors this year, along with the troubled oil and gas sector, but have rallied…

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