Distressed debt turns positive; exchange offer gives Realogy a boost; Harry & David lower

By Stephanie N. Rotondo

Portland, Ore., Dec. 1 - The first day of December saw distressed debt turning positive after two days of weaker to sideways trading, sources reported Wednesday.

"There was pretty good volume today," a trader said, as another estimated that total secondary market trading was "just shy" of $2 billion.

Realogy Corp. was the nom du jour, as the company announced a debt-for-debt exchange. The company's bonds jumped anywhere from 7 to 9 points on the news, with "a boatload" of the various issues changing hands.

Meanwhile, Harry & David Operations Corp. was one of the day's few declining credits. One trader said it was due to one seller who was attempting to liquidate his position.

OPTI Canada Inc. was another active one, according to traders. The company's debt capitalized on the positive trend of the day, moving back up to 70 or higher after a few days of sitting below that mark.

Realogy debt was "one of the big movers," a trader said, after the company announced a debt exchange offer.

The trader saw the bonds gaining 7 to 9 points on the day, with the 10½% notes due 2014 being "the fairly active one," gaining 7 points to close around "93 and change." That compared to markets of 86 bid, 87 offered previously, he added.

However, the 12 3/8% notes due 2015 improved the most, adding 9 points to its value and finishing around 91.

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