Coinbase notes gain after downgrade; AMC uptrend continues; Rackspace paper mixed

By Abigail W. Adams

Portland, Me., Jan. 12 – The distressed debt space continued to benefit from the market’s renewed risk-on sentiment with the December Consumer Price Index report doing little to dampen sentiment.

The report fell in line with expectations and supported the market’s bet that the Federal Reserve will raise interest rates by 25 basis points on Feb. 1, sources said.

The S&P U.S. High Yield Corporate Distressed Bond index gained another 0.88% on Thursday with year-to-date gains now 5.88%.

AMC Entertainment Holdings, Inc.’s junk bonds continued their strong uptrend on Thursday with the 10% senior secured second-lien notes due 2026 (Caa3/CC) continuing to add in heavy volume.

The notes closed Thursday at 49½ with the yield now 37.38%, according to a market source.

Coinbase Global, Inc.’s junk bonds (Ba2/BB-) also extended their uptrend despite a recent ratings downgrade.

Coinbase’s 3 3/8% notes due 2028 rose another 1 point with the notes trading in the 59 7/8 to 60 1/8 context heading into the market close.

The crypto exchange’s 3 5/8% senior notes due 2031 also climbed 1 point to close Thursday at 54¾.

Rackspace Technology Global Inc.’s junk bonds made an appearance on the tape on Thursday with the cloud computing company’s unsecured notes lower while its secured paper moved higher.

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