Moody's Bankrupt Bond Index up 0.1% in November, biggest influx of issuers, debt ever

New York, Dec. 14 - Moody's Investors Service said its Bankrupt Bond Index was almost flat in November, rising just 0.1% to 869.

Moody's also noted that November saw the highest number of issuers and the biggest volume of debt entering the index since its inception in 1981.

Among the entrants, Exodus Communications, Inc. contributed nearly $3 billion of debt to the index, bringing the total face value to $53.1 billion, a 7.6% monthly increase and a 128.9% year-to-date increase, Moody's said.

During the month, 64 issues gained and 48 declined with 120 remaining unchanged.

"Distressed and bankrupt debt have performed poorly as recoveries in default have fallen across all seniorities and levels of security," commented David T. Hamilton, director of default research at Moody's, in a news release.

The biggest gainers included Steel Heddle Manufacturing Co., which gained on news that the bankruptcy court approved several asset purchase agreements, while Orbcomm Global, LP rose on confirmation of its reorganization plan.

Also higher were Fruit of the Loom, Inc., Algoma Steel, Inc., and FRD Acquisition Company.

Decliners included LTV Corp., Outboard Marine Corp.., Sterling Chemicals Holdings, Inc. and Pagemart Wireless, Inc., Moody's said.

End

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.