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Frontier Communications is convincing bond investors that high-speed Internet sales will help bolster revenue that’s dropped for seven straight quarters. The phone, Internet and television provider’s $7 billion of bonds have returned 2.47 percent, more than any junk-rated peer, since July 31. That’s when Frontier said second-quarter sales fell less than analysts estimated as its [...]
Air Canada bonds are outperforming North American rivals as investors bet the nation’s flagship carrier is moving closer to profitability after winning an almost two-year labor dispute with pilots. The airline is the secondbest performer in an index of peers that includes American Airlines parent AMR and United Continental, returning 3.2 percent since July 1 [...]
Caesars Entertainment bonds with an average yield of almost 15 percent are indicating the largest U.S. casino owner will have to restructure its $19.9 billion of borrowings by 2016. While other U.S.-based gaming-company debt yields an average 9.18 percent, according to BAML data, Caesar’s bonds with maturities of more than three years have spreads to [...]
Speculative-grade debt offers an attractive buying opportunity for investors as relative yields on the securities are elevated, according to Martin Fridson, global credit strategist at BNP Paribas Investment Partners. Read more here>>
Junk bonds of healthcare providers are beating the high-yield market after underperforming in the first five months of the year, as a U.S. Supreme Court ruling boosts investors’ optimism for the industry. Read more here>>
European companies are borrowing twice as much in U.S.-dollar denominated leveraged loans this year, seeking lower interest rates as Europe’s leaders begin a two-day summit addressing its sovereign debt crisis. Read more here>>
Aviva Investors aims to raise $5 billion for its new short duration high-yield bond fund. Aviva’s senior high yield portfolio manager Jeremy Hughes tells Bloomberg Brief’s James Crombie why the strategy works for investors seeking income without extreme volatility. Q: Why short duration? A: With short duration, you’ve got the benefit if spreads blow out because you’ve [...]
Trading of exchange-traded funds that focus on junk bonds is soaring while volume in the underlying securities slumps as dwindling dealer holdings prompt investors to seek electronic platforms. Volumes in the two biggest ETFs in June have climbed 22 percent above the six-month average while overall trading for the debt has sunk 9 percent. A [...]
Private-equity firms seeking to buy Atlantic Broadband Finance from Abry Partners and Oak Hill Capital Partners will have an advantage over other types of purchasers: they won’t have to refinance the television and internet service provider’s $1.06 billion of loans. Read more here>>
Best-Performing Automotive Bonds by Rating Group The automotive sector was the best-performing industry in the high-yield corporate bond market in May, outperforming the benchmark Bank of America Merrill Lynch U.S. High Yield Master II Index by 183 basis points. Worst-Performing Metals and Mining Bonds by Rating Group The metals and mining sector was the worst-performing [...]
