Telecom Distress
Meanwhile, the amount of traded distressed bonds and loans shrank to about $88.6 billion as of April 16, down 0.4% week-on-week, data compiled by Bloomberg show. Troubled bonds dropped 0.1% while distressed loans fell 1.3%.
Telecoms had more than $17 billion in distressed debt, making the sector the most troubled part of credit markets for the first time since the pandemic began. Since March 2020, oil and gas firms had accounted for the lion’s share of distressed bonds and loans, the data show.
There were 242 distressed bonds from 132 issuers trading as of Monday, up from 232 and 128, respectively, one week earlier, according to Trace data.
Diamond Sports Group LLC had the most distressed debt of issuers that hadn’t filed for bankruptcy as of April 16, Bloomberg data show. Its parent company, Sinclair Broadcast Group Inc., said in a March filing that it expects Diamond to have enough cash for the next 12 months if the pandemic doesn’t get worse.
Top 5 Distressed Issues
1. Diamond Sports Group LLC, $8 billion in debt
2. Transocean Inc $4.2 billion in debt
3. Ligado Networks LLC $3.9 billion in debt
4. Lightstone Holdco $2 billion in debt
5. AMC Entertainment Holdings Inc $1.7 billion in debt
—With assistance from Jenny Sanchez.
This article was provided by Bloomberg News.