Earnings-related activity moves Community Health, Fresh Market, CF Industries

By Colin Hanner

Chicago, May 3 – Earnings-related activity continued to stir movement in the distressed debt market on Wednesday, traders said, but overall activity paled in comparison to a day prior.

“A lot of trading has been earnings-related,” a trader said. “People were waiting for [earnings] to dictate some direction, but there hasn’t been a ton of notables.” Benchmark bonds for Frontier Communications Corp. were among the most active in all of Junkbondland, though traded out of distressed territory.

Community Health Systems, Inc. remained active, traders said, as did Valeant Pharmaceuticals International, Inc., though activity was more muted than during Tuesday’s session.

On Tuesday, privately-held grocery store chain Fresh Market, Inc. was several points higher after the company released its earnings and was flat-to-slightly higher on Wednesday’s session, a trader said.

On the other hand, CF Industries Holdings, Inc. released its first quarter results after the closing bell, with its bonds either flat or down before its release.

The recent downfall of California Resources Corp. was further cemented on Wednesday, as crude oil futures continued to fall, bringing down several other exploration and production names.

Rental groups Hertz Global Holdings, Inc. and Rent-A-Center, Inc. tapered off from Tuesday’s swings and were either flat or barely changed on the day.

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