AMD bonds improve after earnings, joint venture news; Peabody active; oil preferreds gain

By Stephanie N. Rotondo

Seattle, April 22 – With new issues still keeping distressed bond investors on the sidelines, fresh news from Advanced Micro Devices Inc. was drawing some back in.

AMD’s bonds got a sizable boost following news announced late Thursday. Not only did the chipmaker report first-quarter earnings that were, while not stellar, certainly better than expected, it also announced a new joint venture that got the market excited.

One trader said the name was the day’s “big outlier in price.”

Meanwhile, traders said trading in Peabody Energy Corp. – which filed for bankruptcy on April 13 – continued to be on the active side.

However, there was no particular news that was driving the volume up, the traders reported.

One trader said the 6% notes due 2018 were unchanged at 11. Another trader placed the issue in a 10½ to 11 ZIP code.

AMD debt “popped a bunch,” a trader said Friday.

The gain came after the company announced its first-quarter results, as well as a new Chinese joint venture.

Post-news, the trader said the bonds improved 7 to 10 points.

He saw the 6¾% notes due 2019 adding 7 points to close at 85. The 7¾% notes due 2020 meantime put on about 10 points to end in the low-80s.

As crude prices ended the week with a strong tone – in fact marking its third straight week of gains – oil and gas-linked preferreds were also trending higher.

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