Bed Bath & Beyond notes pare losses; Michaels uptrend continues; AMC Entertainment gains

By Abigail W. Adams

Portland, Me., Jan. 11 – The distressed debt space continued its strong uptrend on Wednesday with the risk-on sentiment in the market strong heading into the latest inflationary reading.

While the Thursday release of the Consumer Price Index report promises to be a high-volatility event, the market is betting on a lower-than-expected figure and a slower-than-expected pace to the Federal Reserve’s rate hike campaign.

The S&P U.S. High Yield Corporate Distressed Bond index gained another 0.65% on Wednesday, lifting year-to-date gains to 4.96%.

The index has now logged seven consecutive days of gains.

Retail remained in focus with some names in the sector riding the market’s strong uptrend while others prepare for bankruptcy.

Bed Bath & Beyond Inc.’s junk bonds continued to bounce off their lows as investors eye the recovery prospects for the notes with a bankruptcy filing widely anticipated.

However, Michaels Cos., Inc.’s 7 7/8% senior notes due 2029 (Caa1/CCC) continued to add in heavy volume on Wednesday with the retailer’s notes making strong gains since the start of the year.

AMC Entertainment Holdings, Inc.’s junk bonds also continued to benefit from the market’s renewed risk-on sentiment with the notes making strong gains on Wednesday.

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