Retail in focus; Bed Bath & Beyond gives back gains on bankruptcy talks; AMC weakens

By Abigail W. Adams

Portland, Me., Jan. 13 – The distressed debt space rounded out a strong week with continued strength on Friday with distressed credits well bid as investors bargain shop in the secondary space.

While the risk-on sentiment has been strong over the past two weeks, market players are on recession watch with the retail sector in focus.

The sector has proven to be a mixed bag with Bed Bath & Beyond Inc.’s and Party City Holdings Inc.’s junk bonds plummeting on anticipated bankruptcy filings while other retailers’ junk bonds have been on strong uptrends.

Bed Bath & Beyond’s junk bonds gave back some gains after bouncing off their lows the previous two sessions as news reports circulate about talks with lenders ahead of a bankruptcy filing.

However, Rite Aid Corp.’s 8% senior secured notes due 2026 (B3/CCC-/B) were bid up in active trade after drifting lower throughout the week.

Staples, Inc.’s 10¾% senior notes due 2027 (Caa2/CCC+) were also on the rise in active trade.

Meanwhile, AMC Entertainment Holdings, Inc.’s junk bonds gave back some gains from its strong uptrend over the past week as meme stocks weakened.

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