Qurate Retail notes, CDS spreads improve in November; Enviva bonds drop; DISH down

By Cristal Cody

Tupelo, Miss., Nov. 16 – Qurate Retail Inc., a West Chester, Pa.-based home shopping network owner formerly known as Liberty Interactive LLC, has been seeing something of a revival so far in November, sources reported Thursday.

Qurate Retail's 8¼% senior notes due 2030 (Caa2/CCC-) were trading Thursday more than 10 points better since the start of the month.

The company’s credit default swap spreads also came in more than 300 basis points this week.

Enviva Partners, LP’s 6½% senior notes due 2026 (Caa2/CC/CC) continued to dominate secondary action over the session.

The bonds slid more than 8 points on $27 million of paper traded.

Stocks were mixed on Thursday as Treasury yields declined as much as 9 bps on the benchmark 10-year note.

The S&P 500 index edged up 0.12%.

The iShares iBoxx High Yield Corporate Bond ETF added a dime, or 0.13%, to $74.60.

The CBOE Volatility index was about 1% higher at 14.32.

The distressed space could grow even wider by next year, according to a report on Thursday from S&P Global Ratings.

The U.S. trailing 12-month speculative-grade corporate default rate could hit 5%, or 86 defaults, by September 2024, S&P said.

The rate was 4.1% in September 2023.

“Defaults are becoming more widespread across sectors, but consumer-facing sectors such as consumer products and media and entertainment, along with health care, are likely to continue leading among defaults as these remain sectors with high leverage and strained cash flow,” S&P said.

DISH Network Corp.’s 7¾% senior notes due 2026 (Caa2/B-) saw heavy movement in the distressed space on Thursday. The bonds gave back more than 1 point and were yielding over 30% on nearly $17 million of paper traded.

Qurate stronger

Qurate Retail's 8¼% senior notes due 2030 (Caa2/CCC-) traded on Thursday at 38¾ bid on $5.4 million of secondary action, a source said.

The issue has climbed more than 10 points since the start of the month. On Nov. 3, the notes were quoted up 3 points on the day at 31 bid.

Meanwhile, Qurate Retail’s CDS spreads came in more than 300 bps over the past week ended Wednesday.

CDS spreads firmed 324 bps to 2,552 bps during the period, according to a report from Moody’s Investors Service.

The West Chester, Pa.-based home shopping network company is the parent of QVC Inc.

Enviva declines

Enviva Partners’ 6½% senior notes due 2026 (Caa2/CC/CC) dropped 8¼ points by the close to head out at 44¼ bid and a 52.74% yield on $27 million of paper changing hands, a source said.

Earlier in the week, the notes were quoted Tuesday up 9 points at 53 bid and a 41.37% yield on $28.44 million of volume.

The paper has been unstable since the prior week after Enviva reported heavy third-quarter losses and doubt about its ability to continue as a going concern.

Enviva’s issue slid more than 31 points to a 32 bid handle in the same session a week ago following the earnings report.

The Bethesda, Md.-based industrial wood pellets manufacturer’s stock (NYSE: EVA) climbed over 7% on Thursday to $1.36.

DISH lower

DISH bonds were seen on Thursday down about 1/8 point to more than 1½ points in active secondary supply, a source said.

DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-) fell more than 1 point to a 60 bid handle on $16.6 million of trading.

The bonds have drifted lower over the back half of the week. The issue was seen on Tuesday up 1¼ points at 62¼ bid on $17.78 million of volume.

DISH’s 5 1/8% senior notes due 2029 (Caa2/B-) also fell over ¼ point to around 47 bid on $5.7 million of trading on Thursday.

DISH’s bonds have been volatile this month after the Englewood, Colo.-based satellite cable operator reported third-quarter losses.

Distressed returns up

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns were stronger on Wednesday at 0.16%, up from 0.07% at the start of the week.

Month-to-date total returns hit 2.29% midweek from 0.94% on Monday.

Year-to-date distressed total returns rose on Wednesday to 13.04% from 11.54% at the week’s start.

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