U.S. Steel bonds stabilize after earnings miss; Resolute Forest notes bounce from recent lows

By Paul Deckelman

New York, April 28 – Traders in distressed debt issues saw a mostly featureless market on Friday, other than the generally firmer tone carried over from the overall junk bond market.

They said several issues which had recently been under pressure seemed to have stabilized.

One was United States Steel Corp., whose bonds had seen several days of losses after the giant metals processor surprised Wall Street earlier in the week by reporting an adjusted net loss and lowering its full-year guidance.

They also saw some improvement in Resolute Forest Products Inc.’s bonds, which had retreated earlier in the week on the news that the United States plans to slap a hefty tariff on imports of Canadian lumber over Canada’s alleged unfair subsidization of those wood producers, a charge that Canada denies.

Traders also saw upturns in some of the bonds of the beleaguered retailing industry, including PetSmart Inc., Sears Holdings Corp., JC Penney Corp. Inc. and Bon-Ton Department Stores Inc.

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