Distressed bonds head into higher territory; energy, coal names follow trend; iHeart firms

By Stephanie N. Rotondo

Phoenix, Oct. 16 – Distressed debt managed to recover some recent lost ground on Thursday.

“Some things definitely bounced off the lows,” a trader said.

“There were offer-wanteds the whole day long,” another trader said.

The KDP High Yield Index came off of its 52-week low, ending at 71.04, with a 5.91% yield. On Wednesday, the index had hit its low point of 70.93, with a 5.95% yield.

There was a “wild swing” in the energy exploration and production sector, “which had been particularly downtrodden,” according to a trader.

Most bonds in that space – as well as in the coal space – were improved on the day.

Quicksilver Resources Inc.’s notes “traded actively,” a trader said, while Samson Investments Co.’s notes were up over 2 points.

At another desk, SandRidge Energy Inc.’s notes were called 1½ points better, while Linn Energy LLC’s notes improved almost a point.

The coal space “had a real good rebound to it too,” according to a trader.

The firmer tone of the market was also helping iHeart Communications Inc.

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