Billionaire Eddie Lampert’s quest to revive Sears Holdings Corp. is looking dubious to credit-swaps traders, Bloomberg News reported today. It now costs more to insure against a Sears default for a year than for five years, a dynamic that indicates traders anticipate a credit event such as a default in the near term. The relationship was reversed as recently as last month, according to prices compiled by CMA in the privately negotiated market for credit swaps. The 129-year-old company, which has lost $7 billion over the past four years, is trying to avoid the fate of RadioShack Corp., another once-iconic retailer that filed for bankruptcy protection this month. Sears has divested assets and received cash infusions from Lampert, one of its largest shareholders. In November, the Hoffman Estates, Ill.-based company said it was considering the sale and leaseback of as many as 300 stores as part of its turnaround effort.
