Distressed Bond Update

Since we last wrote in mid August, the EXXI bond due 2018 has rallied from about 8 cents to 15 cents. It still would yield about 75% to maturity.

The Peabody (BTU) note due 2018 had traded at 34/48% ytm and is now roughly the same at 36/46% ytm. The 4.75% sub note is at 15 cents - a 32% current yield.