Distressed Credit Digest

July 5, 2020

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Distressed/High Yield Watchlist

Tracking 238 credits from 145 companies
Click here for the full watchlist

Added (No new companies)
None

Removed (No removed companies)
None

Top Movers for the Week

Bottom Movers for the Week

Highlights

AMC Entertainment (AMC) saw the first liens trade lower by 3.50pts to 81.50 yielding 16.23% as company continues to struggle to execute the exchange of its sub notes. The sub notes ended the week around 31.00.

Party City (PRTY) bonds remained unchanged in the low 20s as the company gave an update on its recent exchange. Nearly two thirds of the Senior bondholders have agreed to the exchange. The company still needs 98% approval from all bondholders for it to be successful.

Lonestar Resources (LONE) missed an interest payment on its LONE 11.25% notes and enter its 30-day grace period. The senior bonds remain very illiquid with only one small trade this past week around 9.00.

Conn’s (CONN 7.25 ’22) bonds continue to strengthen as they traded as high as 85.25 this week. The retailer has rallied from its March’s low of 50 as its stock is now trading at this past January levels again.

Triumph (TGI 5.25 ’22) short-dated bonds were lower by 6pts to 81.50 yielding 17%. The capital structure remain very volatile over the past few months.

Quorum Health (QHCC) received court approval for its restructuring plan. It anticipates to emerge from bankruptcy later this month or next.

Tailored Brands (TLRD 7.00 ’22) missed their July 1st coupon payment, entering the 30-day grace period. 

 


How to track corporate bond prices?

In today’s world, it is relatively easy to buy stock in public US companies. Even easier to find up-to-date pricing for stocks and I highly recommend using Koyfin to do so.

If you follow this credit digest you must be also interested in certain individual corporate credits. Whether within distressed and other credit markets like high-yield and investment grade. Personally, I always like to know where a company’s credit is trading before buying a stock.

At Koyfin, we have explored adding corporate bond pricing to our platform and hope to do so at some point next year. In the meantime, where does one find pricing on individual fixed-income securities?

FINRA Trace Reporting Website

Since the majority of fixed-income trading is done over-the-counter (OTC), these markets can be less liquid than listed exchanges. Some securities trade everyday while others might not trade for weeks. Trace was developed to bring greater price transparency to fixed-income markets.

Many institutional fixed-income brokers get trace data from trading platforms like Tradeweb and MarketAxess or even their Bloomberg terminals. For individuals, you are usually limited to FINRA’s website.

http://finra-markets.morningstar.com/BondCenter/Default.jsp

The website is somewhat hard to navigate and explore. Yet if you look hard enough, you can find all the information that is displayed on professional terminals like Bloomberg.

For the distressed credit digest watchlist, I encourage you to request view access to the Google Sheets page as I have linked the columns H and I to the FINRA trace site for your convenience. Those two columns that will directly bring you to the credit’s description page as well as the individual trades page. 

I personally give access to this watchlist, so if you request access, please allow some time for approval.

https://docs.google.com/spreadsheets/d/17CE82ulzQX9KuRBMBeWXdyyx6LSjXqdaTepEc27A-8s/edit

Enjoy.

 


I am Rich, the co-founder of Koyfin. As a former distressed high-yield trader now designer/developer, I wanted to share some thoughts and observations I see in the distressed high-yield corporate bond market. During my trading days, I shared a daily distressed digest with clients containing trading color and news. Now, I hope to share them with you. Feel free to follow me on Twitter @koyfinTrader as well as share any feedback. My DMs are always open.