Anywhere Real Estate paper, CDS spreads soft; Rite Aid quiet; Bausch Health notes gain

By Cristal Cody

Tupelo, Miss., Feb. 23 – Anywhere Real Estate Group LLC’s bonds declined on Thursday, while its credit default swap spreads moved out ahead of the company’s heavy fiscal 2022 loss reported over the day.

Anywhere Real Estate’s 5¼% senior notes due 2030 (B2/B+) traded down about 1¾ points.

The company’s CDS spreads widened 60 basis points over the past week ended Wednesday.

So far, 441 companies have reported quarterly earnings with 68.9% surpassing forecasts, “while 24.7% have fallen short of expectations,” Confluence Investment Management strategists said in a note on Thursday.

Bausch Health Cos. Inc.’s distressed paper saw additional gains in secondary trading on Thursday after the company posted losses for the fourth quarter and fiscal 2022.

Meanwhile, distressed Rite Aid Corp. paper has been little traded this week, while the drugstore chain’s CDS spreads came in more than 300 bps.

The Fear Factor index declined more than 5% over the session.

The CBOE Volatility index went out at $21.15.

The iShares iBoxx High Yield Corporate Bond ETF traded up 73 cents, or 0.99%, to $74.62.

Anywhere weakens

Anywhere Real Estate’s 5¼% senior notes due 2030 (B2/B+) slipped about 1¾ points to 69 bid on Thursday, a source said.

The company’s CDS spreads widened 60 bps over the past week ended Wednesday to 832 bps, Moody’s Investors Service said in a note.

On Thursday, Anywhere Real Estate reported fiscal 2022 losses of $287 million, down from a profit of $343 million in 2021, along with a 13% drop in annual revenue.

Fourth-quarter losses hit $453 million following a $47 million profit in the same quarter a year earlier.

The company, formerly known as Realogy, is a real estate services company based in Madison, N.J.

Bausch paper higher

Bausch Health Americas Inc.’s 8½% senior notes due 2027 (Ca/CCC) rose ¾ point to 51½ bid by the day’s close, a source said Thursday.

The company’s paper overall was seen trading about ¾ point to more than 1 point higher on Wednesday after moving lower at the start of the week.

The Laval, Quebec-based pharmaceutical company on Thursday reported fourth-quarter revenue was little changed from 2021, while it had a loss of $410 million. For fiscal 2022, Bausch’s losses narrowed to $212 million from a $937 million loss in 2021.

Rite Aid flat to better

Rite Aid saw some improvement this week in its CDS spreads after moving out nearly 500 bps in the prior week, while the retailer’s paper was little traded, according to market sources on Thursday.

The 8% senior secured notes due 2026 (Caa3/CCC-/CCC) were last seen trading in any significant volume in the prior week on a 54 bid handle, a source said.

Rite Aid’s CDS spreads were approaching 5,000 bps in the prior week after widening 484 bps, according to a report from Moody’s.

Over the past week ended Wednesday, the Camp Hill, Pa.-based drugstore chain’s CDS spreads tightened 340 bps to 4,583 bps, Moody’s said.

Distressed returns edge up

S&P U.S. High Yield Corporate Distressed Bond index one-day returns improved on Wednesday to 0.03% from minus 0.91% on Tuesday.

Month-to-date returns remained soft but higher at minus 0.38%, compared to minus 0.41% at the start of the holiday-shortened week.

Quarterly and year-to-date total returns edged up to 7.58% versus 7.54% on Tuesday.

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