WeWork bonds decline; Bausch Health paper recovers Friday losses; distressed returns soften

By Cristal Cody

Tupelo, Miss., Dec. 18 – Distressed paper traded in lighter active on Monday in favor of new junk issues and higher-rated junk bonds, according to market sources.

Bankrupt WeWork Inc.’s 7 7/8% notes due 2025 (D) dropped over 2 points over the session in one of the more active deep distressed names.

The issue had $1.4 million of secondary supply during the session.

Elsewhere, Bausch Health Cos. Inc.’s 11% senior secured first-lien notes due 2028 (Caa1/CCC+/B) recovered Monday after shedding more than 1 point Friday, though overall trading supply stayed light as the final pre-holiday week kicked off.

Bausch’s 11% senior secured first-lien notes due 2028 added about 1 1/8 points to a print of 70.377 on $3.5 million of volume, a source said.

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns declined Friday to minus 0.03% from 2.76% on Thursday, 0.4% on Wednesday, 0.38% on Tuesday and 0.14% at the start of the prior week.

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