QVC gains; Digicel rallies; Citizens climbs; DISH lower; default rate forecast upped

By Cristal Cody

Tupelo, Miss., May 31 – Some distressed paper trended better in the secondary market on Wednesday across several sectors, sources reported.

QVC Inc.’s 4¾% senior secured notes due 2027 (B2/B-) went out more than ¼ point higher at around 61¼ bid, a source said.

In the distressed telecom space, Digicel Group Holdings Ltd.’s 8% senior bonds due 2025 (Ca//C) jumped 7 points to 44 bid, according to a market source.

The notes carried a yield of 60.9%.

Some high-grade financial paper carrying yields of nearly 200% also traded on Wednesday.

Citizens Financial Group, Inc.’s 6% fixed-to-floating rate perpetual preferred stock (Baa3/BB+/BB) improved more than 3¼ points to an 84 handle by the close, a source said.

The yield was 188.6%.

Meanwhile, DISH Network Corp.’s 7¾% senior notes due 2026 (B3/B-) softened ¼ point to a 57 bid handle on more than $10 million of trading supply, a source said.

The slide in DISH’s paper is helping to increase default concerns, according to market sources.

Fitch Ratings said Tuesday it raised its U.S. high-yield bond default rate forecast to 4½% to 5% in 2023 from 3% to 3½%, while its market concern bond lists are growing largely due to the addition of DISH and other issuers.

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