Michaels uptrend continues; CommScope diverges, short-duration notes add to gains

By Abigail W. Adams

Portland, Me., March 7 – The distressed debt space saw a quiet yet firm session on Thursday with trading volume thin as recent market moving topical and earnings-related headlines faded from view.

While quiet, market sentiment improved after Federal Reserve chair Jerome Powell’s second day of congressional testimony with Powell conceding that Fed officials were close to receiving the confirmation needed to begin their rate cut campaign.

Market players are now eyeing June as the most likely start for rate cuts, a source said.

The testimony lifted sentiment but did not translate into trading activity with the names that were active during Thursday’s session carry-overs.

Michaels Cos., Inc.’s 7 7/8% senior notes due 2029 (Caa2/CCC-) continued the strong uptrend that formed post-earnings in mid-February with buyers lifting the notes higher in heavy volume.

The 7 7/8% notes added ¼ to ½ point with the notes trading in the 67¾ to 68¼ context in heavy volume, according to a market source.

CommScope Holding Co., Inc.’s senior notes (Caa2/CCC-) diverged on Thursday with the shorter duration 6% senior notes due 2025 making large gains to the upside while the 8¼% senior notes due 2027 continued to fall.

CommScope’s 6% senior notes due 2025 rose 1½ points in active trade and were seen at 86½ heading into the market close.

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