| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2013 > News item |
Distressed marketplace opens week with firm tone; MBIA subsidiary pays dividend, bonds unfazed
By Stephanie N. Rotondo
Phoenix, Oct. 28 - Distressed bonds "drifted higher" in Monday trading, according to a trader.
Still, he said overall trading was thin, as investors looked toward ongoing third-quarter earnings and the Federal Reserve's release of minutes from its most recent meeting.
"A bunch of new issues priced late so that was the focus," said another trader.
Overseas Shipholding Group Inc.'s 8 1/8% notes due 2018 moved up to 911/2, the trader said, while Exide Technologies Inc.'s 8 5/8% notes due 2018 inched up to 763/4.
AmerenEnergy Generating Co. debt was also stronger, with both the 7.95% notes due 2032 and the 6.3% notes due 2020 rising to 781/2.
Among other power companies, Energy Future Holdings Corp.'s 15% notes due 2021 linked to Texas Competitive Electric Holdings Co. LLC gained strength as well, ending the day around 26, according to a trader.
Also firmer were J.C. Penney Co. Inc.'s 5.65% notes due 2020, which a trader placed in a 70 to 71 context.
However, AMR Corp.'s 6¼% convertible notes due 2014 were unchanged, a trader said, at 121, even given the stock gyrations seen on Friday.
MBIA receives dividend
In an 8-K filed on Monday, MBIA Inc. said that its National Public Finance Guarantee Corp. subsidiary had paid a dividend of $214 million to the parent company on Oct. 2.
The filing noted that an injunction was filed on Oct. 23 barring the subsidiary from making such payments. However, the payment was made before the plaintiffs sought the injunction, so the payment was approved.
Furthermore, MBIA said it believed the motion was "not meritorious and should be denied."
A trader said the news "didn't do much for the bonds," but noted that the stock (NYSE: MBI) was up 5%.
The equity ended the day at $11.61, up 56 cents, or 5.07%.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.