Bankruptcy news sets in for Vanguard Natural; Algeco up on exchange; Neiman trades tightly

By Colin Hanner

Chicago, Feb. 3 – The week in distressed trading was capped by another session where focus was on new high-yield issues, traders said Friday, though a company that recently entered bankruptcy was the most actively traded issue in the distressed space.

“High-quality, high-yield issues were rallying with the market today,” a trader said. The Dow made its biggest jump of the calendar year thus far, with a strong employment report bolstering Wall Street sentiment.

In the distressed arena, Houston-based natural gas company Vanguard Natural Resources, LLC, which on Thursday announced it had entered Chapter 11 protection, fell once news was given a session to ferment.

“It continued its downward trend today,” a trader said, adding the issue traded off several points.

Aside from a few outliers that traded outside of a point from where they started, including Algeco/Scotsman Holding Sarl, Hornbeck Offshore Services, Inc. and Diamond Offshore Drilling, Inc., securities tended to traded tight.

Retailer Neiman Marcus Group, Inc. continued to see tight mixed movement in two of its issues, Valeant Pharmaceuticals International, Inc. and Community Health Systems, Inc. were mixed in both directions and Avaya Inc. moved modestly higher.

“There was not much in the way of [iHeartCommunications, Inc.] or [Intelsat SA],” either, a trader said, characterizing a week where commonplace distressed names did not veer far from where they started.

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