Quicksilver downgraded on missed coupon; Caesars declines after CDS auction; Freddie dips

By Stephanie N. Rotondo

Phoenix, Feb. 19 – The distressed debt market was mixed on the day, following an initial jobs claims report and Germany’s rejection of Greece’s loan extension request.

Initial jobless claims for the week ended Feb. 14 fell 21,000 to 283,000, according to the latest Labor Department report. However, continuing claims rose 58,000 to 2.43 million for the week ended Feb. 7.

As for the ongoing Greek drama, Germany rejected Greece’s request to extend its Eurozone loan for six months, during which time the ailing country pledged “fiscal balance.”

However, Germany said the plan was “not a substantial proposal for a solution.”

Traders gave mixed reports regarding Quicksilver Resources Inc. The company received a downgrade on Thursday, after missing a coupon payment on Tuesday.

However, Caesars Entertainment Corp. wasn’t as lucky, ending weaker following an auction to settle the company’s credit-default swaps.

The company also sought to disband a second-lien creditors committee.

Freddie Mac reported net income of $227 million for the fourth quarter on Thursday.

That compared to income of $8.6 billion the year before.

“The earnings didn’t hit estimates,” a trader noted.

Freddie’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were down a dime, or 2.2%, at $4.45.

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