Distressed market quiet; Toys, Bombardier, Windstream off; Venezuela, PDVSA seen weak

By Paul Deckelman

New York, Oct. 20 – The week ended quietly on Friday in the market for underperforming and distressed company bonds, as several names which had firmed earlier in the week on news developments were closing out the week below those highs.

Traders said that Canadian aircraft manufacturer Bombardier Inc.’s paper – which had firmed smartly earlier in the week on the news that global aerospace giant Airbus will partner with Bombardier in developing the latter’s next generation of passenger jetliners – was seen having come off those hefty gains.

Likewise, Toy’s ‘R’ Us Inc.’s 2018 notes, which had zoomed 15 points earlier in the week on speculation the bankrupt retailer may try to raise capital via an IPO for its Asian unit, were seen losing ground on Friday.

Windstream Holdings Inc.’s bonds, boosted on Thursday on news of an exchange offer by the telecommunications company, gave back some of those gains on Friday.

In the emerging markets space, Venezuela’s sovereign debt and state-controlled oil monopoly Petroleos de Venezuela SA’s bonds were weaker amid investor worries on upcoming payments on the country’s and the oil unit’s debt.

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