J.C. Penney remains on the same trajectory as before, with its holiday sales results making little case for a change in trajectory.
It does need to move to a new trajectory of rapidly improving comps soon, though, given that a large amount of first-lien debt becomes due in 2023.
Gross margin improvement isn't enough on its own, and J.C. Penney will probably need 3+% improvement in net sales by then as well.
2020 bonds are still pricing in a high likelihood of being repaid, and have not changed in price much recently.
J.C. Penney's 2020 guidance should have a significant effect on the price of its securities.