Key ARC Findings for the Week of April 22, 2023:
- The ARCs remained relatively constant over the last week at $332 billion.
- The difference between the face amount and market amount is $84 billion, indicating an environment ripe for uptier exchanges.
- The difference between the average coupon and average yield is almost 14%.
- The largest industry sector category is financial services.
- ~14% of the ARCs have a maturity of less than two years.
- The next Federal Reserve meeting announcement is scheduled for May 3 and the blackout period began on April 21 and lasts until 5/3.
- Big week for companies: Next week, more than 1,700 companies are expected to announce earnings, with Thursday being the heaviest day (599 expected).
- Bed Bath & Beyond is reportedly contemplating a bankruptcy filing (again) as soon as this weekend.
- Notable bankruptcy filings last week include Structurlam Mass Timber US, Inc. and David’s Bridal LLC (2nd time filing).
- For the last twelve months, the largest category of corporate bankruptcies is real estate with 1,241 cases filed (mostly small cases but a sector expected to have significant activity in the future).
See full At-risk Credits (ARC) report for April 22, 2023.