Distressed bond market gains for second day; iHeart busy, better; mining, coal continue rally

By Stephanie N. Rotondo

Phoenix, Oct. 21 – Distressed bonds continued to gain ground on Tuesday, continuing the trend from Monday and reversing course from most of the previous week.

Following that trend, coal and mining names continued to climb higher. Those names had been beaten down quite a lot last week and are now in recovery mode.

Other names and sectors were simply benefiting from the positive tone, as there was no fresh news to act as a catalyst.

A trader said that there was “tons” of trading in iHeart Communications Inc. paper.

“They were up 3 to 4 points, at least,” he said.

He said the 10% notes due 2018 closed at 86, up from 80. The 14% notes due 2021 rose 4 points to 90¼.

Caesars Entertainment Corp. was another gainer, with the 9% notes due 2020 inching up a touch to 76½.

The 10% notes due 2018 put on nearly a point to close around 17.

There was meantime “heavy volume” in Avaya Inc.’s 10½% notes due 2021, which gained over 3 points to close at 88¼, according to a trader.

In NII Holdings Inc. debt, the 10% notes due 2016 improved over 2 points to 29½, as the 7 7/8% notes due 2019 earned nearly 2 points to 64 1/8.

Mining, coals remain firm

The mining sector remained on an upward course Tuesday, as the space looked to erase losses from the previous week.

Cliffs Natural Resources Inc. bonds managed to move up, though they had been pressured on Monday after being downgraded by Moody’s Investors Service.

A trader said the 4.8% notes due 2020 gained 2½ points to 71½. The 6¼% notes due 2040 closed up a point at 67 and the 4 7/8% notes due 2021 finished 1¾ points higher at 70.

Quicksilver Resources Inc.’s 7 1/8% notes due 2016 meantime popped over 4 points to 29.

There was also firmness in the coal sector.

Arch Coal Inc.’s 7¼% notes due 2020 rose over 3 points to 55¼ and the 7¼% notes due 2021 inched up 1½ points to 42½.

In Alpha Natural Resources Inc.’s debt, the 6% notes due 2021 ended up 1½ points to 53¾, a trader said. The 6% notes due 2019 were up 1¾ points to 57¾.

At another desk, a market source pegged the 6¼% notes due 2021 at 53½ bid, up over 3 points on the day.

© 2015 Prospect News.
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