Distressed bonds recover to end week; Toys ‘R’ Us holiday sales, bonds rise; steel mixed

By Stephanie N. Rotondo

Seattle, Jan. 8 – Distressed debt finished the week higher, though the broader markets lost their early gains by the end of the day.

The course reversal came after China’s market’s showed improvement following two trading-day halts this week. Also steadying the markets – at least on the domestic side – was word that nonfarm payrolls added 292,000 jobs in December. Additionally, October and November jobs figures were revised to add another 50,000 jobs for those months.

Holiday sales figures were also starting to come out. Among distressed retailers, Toys “R” Us Inc. managed to post improved sales for the period. The toy retailer’s results released Friday, showed a 2% gain in combined core sales for November and December.

As a result, the retailer’s bonds had “a pretty big rally,” a trader said.

Meanwhile, market sources gave mixed reviews of the steel sector in Friday trading, with some reporting that the space was weaker and others seeing an upward trend. There was news out of China early in the day about how the Asian nation intended to cut steel production due to global oversupply of the commodity.

But while the day was mostly positive, there remained spots of weakness.

A trader said Navios Maritime Partners LP’s 8 1/8% notes due 2019 fell a deuce to 41 7/8.

“They have been under some pressure,” the trader said. “So have some of the other shippers.”

There was no news, however, to cause the decline.

© 2015 Prospect News.
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