VEON paper plunges; MHP notes drop; Transocean improves as oil rallies; Air Methods up

By Cristal Cody

Tupelo, Miss., Feb. 28 – Distressed secondary bond trading remained light on Monday with the junk and high-grade primary markets stalled on continued volatility surrounding Russia’s invasion of Ukraine.

The iShares iBoxx High Yield Corporate Bond ETF was up 6 cents at $83.67.

Ukraine and Russian bonds stayed soft after moving into the distressed space last week.

VEON Ltd.’s paper slid about 14½ points to 32 points just on Monday, a source said.

The Amsterdam-based telecommunications company operates in nine countries, including Russia.

VEON’s 3 3/8% notes due 2027 (BB+) were quoted off 31 points at 43 bid in light distressed trading totaling $2 million.

Kyiv, Ukraine-based poultry and grain producer MHP SE’s 6.95% senior notes due 2026 (B/B+) were down 12 points at 34 bid on Monday on $6 million of secondary supply, a source said.

Oil was unchanged to higher as sanctions against Russia increased.

West Texas Intermediate crude oil benchmark futures for April deliveries rallied $4.13 to settle at $95.72 a barrel.

Transocean Inc.’s 7½% senior notes due 2026 (Ca/CCC) traded about 1¾ points better.

Meanwhile, Air Methods Corp.’s 8% senior notes due 2025 (Caa2/CCC) picked up 2 points during the session.

Transocean up

Transocean’s 7½% senior notes due 2026 (Ca/CCC) traded about 1¾ points better at 77½ bid on Monday, a market source said.

Trading was light in the Vernier, Switzerland-based offshore driller’s issue with over $1.8 million of volume during the session.

Air Methods gains

Looking at the health care services space, ASP AMC Holdings Inc. unit Air Methods’ 8% senior notes due 2025 (Caa2/CCC) gained 2 points on Monday to hit 83 bid with $3.5 million of paper changing hands, a source said.

The notes are yielding over 14%.

The New York-based ambulance service provider issued the notes via ASP AMC Merger Sub Inc.

Distressed index up

The S&P U.S. High Yield Corporate Distressed Bond index gained on Friday.

The one-day total return jumped to 1.5%, compared to minus 1.61% on Thursday, minus 0.56% on Wednesday and 0.03% on Tuesday at the start of the holiday-shortened week.

Month-to-date total returns improved to minus 1.92% versus minus 3.37% on Thursday, minus 1.8% on Wednesday and minus 1.24% on Tuesday.

Year-to-date index return losses came to minus 3.42% on Friday, compared to minus 4.85% on Thursday, minus 3.3% on Wednesday and minus 2.75% on Tuesday.

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