AMD drops on CEO change; coal, energy paper get ‘bombarded’; Fannie, Freddie bounce back

By Stephanie N. Rotondo

Phoenix, Oct. 9 – The distressed debt arena was pressured again on Thursday, following an equity market reversal due in large part to concerns about a slowing global economy.

“The market got clobbered today,” a trader said.

The reversal was blamed on concerns about the global economy, especially as Germany – Europe’s largest economy – reported a 5.8% decline in exports in August, the biggest drop since January 2009.

Advanced Micro Devices Inc. didn’t need the day’s negative tone to decline, however. The company’s debt dropped Thursday following an announcement on Wednesday that the president and chief executive officer was stepping down.

With the company slated to put out earnings soon, the move has some wondering if it means that a turnaround effort is not going as well as hoped.

But the weak marketplace did little to help the already trampled coal, energy and mining sectors as well.

“Coal, energy and anything oil and gas related is just getting bombarded,” a trader said.

Activity in Fannie Mae and Freddie Mac preferreds seemed to be leveling out, even as the agencies’ paper was “bouncing back a little bit,” according to a trader.

However, the agencies’ paper was the most actively traded securities on the day, of paying and non-paying preferred shares.

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