Things are looking up for Canada oil firms

Toronto

CANADA'S bond market is signalling that formerly distressed energy firms such as Teine Energy Ltd may soon become takeover targets as oil prices stabilise.

Teine, a Canadian oil and gas producer majority owned by Canada Pension Plan Investment Board, has become the best performer in Canada's junk bond market this year, returning 30 per cent. Teine was planning an initial public offering last year before crude collapsed. Bonds of Canbriam Energy Inc, whose owner Warburg Pincus LLC was looking to sell a stake last year, are also beating peers with a 13 per cent return.