Covenant-lite loans now comprise an all-time high of 58% of the loan issues tracked on the JPMorgan Leveraged Loan Index.
Creditors of bankrupt Momentive Performance Materials who initially said no to getting paid cash in lieu of new debt now want to get cash, but the company says it is too late.
Global default activity has been accelerating and the total default tally for the year is up to 39 issuers, according to Standard & Poors.
Five tranches of bonds issued by Caesars Entertainment are among the biggest losers in weekly secondary trading, according to a weekly report from MarketAxess.
Quicksilver Resources is running out of time to refinance $250 million in high yield bonds or trigger the early repayment of another $800 million in debt. Some creditors aren't sticking around to see what happens.
Although leveraged loan and high yield bond market softness is starting to apply pressure on speculative-grade issuers, Moodys Investors Service says strong earnings and limited near-term maturities have so far subdued concerns about the state of corporate liquidity.
U.S. companies in the Telecom, Media and Technology (TMT) sectors that defaulted over the last five years have reorganized with less value than the corporate average, according to Fitch Ratings.
Caesars Entertainment reached an agreement with bondholders to cut some $548.4 million in debt. The move comes as the casino operator is locked in a fight with bondholders over its asset moves as the company attempts to restructure.
Moodys Investors Service reported Monday that its global speculative-grade default rate fell in July to 2.1%, slightly below the 2.2% recorded for June and far below the 3.1% from a year ago.
With two more issuers missing debt payments this week, Standard & Poors said the tally of global corporate defaults has risen to 33 year-to-date a figure far behind the 53 recorded during the same period in 2013. S&P also noted a slight rise in its list of 'B-' or lower "weakest links."