Mid-Month Issuer Review of the S&P U.S. Issued High Yield Corporate Bond Index

The index is up 0.42% month-to-date.  Here is a performance review of the top & bottom 10 issues within the index.

Top 10 Issues

  • May has been a good month for MBIA so far.  The insurer settled a 2008 legal dispute with Bank of America concerning bad mortgage debt.  The $1.7 billion settlement later led to a Standard & Poor’s rating upgrade, which moved the issuer’s senior unsecured debt from B- to BBB.
  • Momentive Performance’s first quarter results of slightly lower sales but improving operating incomes, coupled with refinancing activities for a $270 million asset-based revolving loan and a $75 million revolving credit facility, moved this issuer’s bonds up.
  • TXU bonds improved as Energy Futures Holdings Corp. looks to win support for a bankruptcy restructuring deal. UP10

Bottom 10 Issues

  • Cengage’s CEO has publically announced that the company may need to file for Chapter 11 and that no decision on a restructuring has been made.
  • Physiotherapy Associates is in monetary default as a coupon payment has been missed.
  • Harrah’s Operating Company bonds dropped as Ceasars Entertainment missed estimates due to revenue declines in their main markets.Down10

 

The posts on this blog are opinions, not advice. Please read our disclaimers.

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