TXU gets OK for Oncor sale, debt little moved; Sprint earnings miss; American Realty falls

By Stephanie N. Rotondo

Phoenix, Nov. 3 – The first trading day of the month was a quiet one for the distressed debt market, according to traders.

“I don’t even think there was that much going on in the primary [high yield market],” one trader said. “I think everybody’s dealing with month-end stuff.”

The trader said that Tuesday’s election “could be an excuse” for investors to sit on the sidelines, “but I don’t think it’s such a hot topic of conversation that people aren’t paying attention to the markets because of it.”

Energy Future Holdings Corp.’s bankruptcy case inched forward Monday, as the judge overseeing the case gave the parent company conditional approval to sell its Oncor Electric Delivery Co. LLC unit.

However, even those bonds were little moved on the news.

Meanwhile, Sprint Nextel Corp. put out its third quarter earnings after the market closed. A trader said he hadn’t seen any post-numbers trading, but opined that there could be some action come Tuesday.

Despite the generally positive tone of the market, American Realty Capital Properties Inc.’s 6.7% series F cumulative redeemable preferred stock (Nasdaq: ARCPP) continued to weaken as more bad news rolled out.

In a regulatory filing on Wednesday, American Realty said that its financial statements dating back to 2013 could not be relied upon due to intentional errors and other errors that were intentionally left

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