DISH gains in active trading; Global Aircraft up; Qurate notes rally; defaults climb

By Cristal Cody

Tupelo, Miss., Oct. 17 – DISH Network Corp.’s junk notes and paper flirting with distressed yields improved about 3/8 point to more than 1½ points as one of the more active names traded on Monday.

DISH DBS Corp.’s 7 3/8% senior notes due 2028 (B3/B) were ½ point better at 70¾ bid and yielding nearly 15¼% on $12.74 million of volume on Monday, a source said.

DISH’s 5¼% senior secured notes due 2026 (Ba3/B+) were quoted up ¾ point at 84½ bid on $7.3 million of secondary trading during the session.

Distressed paper from Global Aircraft Leasing Co., Ltd. also was strongly traded over the day, a source said.

The company’s 6½% notes due 2024 (B1) improved 1 point on more than $12 million of volume.

QVC Inc. parent company Qurate Retail Inc.’s 8½% senior debentures due 2029 (B2/B-) rallied more than 3 points in one of the more active distressed names seen trading on Monday on $3.2 million of secondary volume.

Bonds were up as stock indices closed out the first session of the week stronger.

The S&P 500 index finished 2.55% higher.

The iShares iBoxx High Yield Corporate Bond ETF rose 79 cents, or 1.11%, to $72.31.

The CBOE Volatility index moved down 2.62% to 31.18.

Meanwhile, the year-to-date default total now has surpassed 2021’s year-to-date level, according to a S&P Global Ratings report on Monday.

The total currently stands at 61 defaults, one higher than in the same period last year.

September saw eight defaults over the month, half of which were from Europe and led by U.K.-based cinema operators, S&P said.

“We estimate that the U.S. and European trailing-12-month speculative-grade corporate default rates reached 1.6% and 1.4%, respectively, in September,” S&P said. “We can expect the number of defaults to continue to rise for the remainder of 2022 amid worsening credit conditions, which could erode margins and limit lower-rated companies' ability to access funding.”

Global Aircraft better

Global Aircraft’s 6½% notes due 2024 (B1) traded 1 point better at 79¾ bid and yielding 20.1% in one of the most active distressed names seen Monday, a source said.

Secondary trading in the name totaled $12.53 million.

Global Aircraft is a commercial aircraft leasing company and indirect subsidiary of China-based Bohai Leasing Co., Ltd. and majority owner of outstanding ordinary shares of aircraft leasing company Avolon Holding Ltd.

Qurate improves

Qurate Retail’s 8½% senior debentures due 2029 (B2/B-) issued by Liberty Media Corp. traded more than 3 points better on Monday at the 64 bid area on $3.2 million of secondary trading in the bonds, a source said.

The home shopping network owner’s issue has declined from the 91 bid range in April.

The West Chester, Pa.-based media company Qurate Retail was formerly known as Liberty Interactive Corp.

Distressed returns up

S&P U.S. High Yield Corporate Distressed Bond index one-day returns improved to the positive territory on Friday at 0.25%, up from minus 0.5% on Thursday, minus 0.28% on Wednesday and minus 0.93% at the start of the previous holiday week.

Month-to-date total returns rose to minus 0.64% versus minus 0.89% on Thursday, minus 0.4% on Wednesday and minus 0.12% on Tuesday.

Year-to-date total returns improved on Friday to minus 26.69% from minus 26.87% on Thursday, minus 26.51% on Wednesday and minus 26.3% at the week’s start.

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