Altice paper pressured; Diamond Sports range-bound; rate cut chatter grows

By Cristal Cody

Tupelo, Miss., April 17 – Altice France Holding Restricted Group’s paper remained pressured on Wednesday with the distressed bonds trading around ¼ point to nearly 2 points weaker as the company undergoes debt negotiations.

Altice France Holding SA’s 10½% senior notes due 2027 (Ca/CCC-) had dropped 1½ points by the afternoon but gained some ground to head out ¼ point lower on the day at 40¼ bid, though still offering a yield of nearly 51% with the paper down around 30 points since March, sources said.

Altice France SA’s 8 1/8% senior secured notes due 2027 (Caa1/CCC+) declined 1¾ points to 74¼ bid over the afternoon on $17 million of secondary action.

Diamond Sports Group, LLC’s 5 3/8% senior secured notes due 2026 have stayed mostly range-bound in April and were flat on Wednesday at 2 7/8 bid as the company reported court approval of its Chapter 11 bankruptcy disclosure statement, a source said.

While chatter of potentially no rate cuts at all this year has permeated the markets since March inflation data was released, Piper Sandler & Co. analysts forecast the Federal Reserve will enact up to six rate cuts.

“Despite the current restrictive monetary policy and recent shifts in rate cut expectations, historical patterns suggest significant easing in the latter half of 2024,” according to Piper Sandler’s second-quarter bond market outlook report released Wednesday.

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