DISTRESS WATCH: Verizon’s Fiber Bet Lifts $7B of Telecom Debt

The amount of distressed debt worldwide declined to the lowest level of the year as the Verizon takeover of Frontier Communications helped lift bonds and loans of ailing fiber and broadband providers in the US.

Verizon’s purchase of Frontier, aimed at bulking up its broadband offerings, reignited speculation about M&A activity in the telecommunications sector. Last week, about $7 billion of debt issued by telecoms, cable and satellite firms emerged out of distress.

The global distressed debt tally for these sectors combined dropped more than 10% to $60.2 billion, led by Altice USA, Astound Broadband and Lumen Technologies ...