Community Health trades higher for third session; Intelsat up; Ultra Petroleum down

By Colin Hanner

Chicago, Feb. 22 – Company earnings continued to be the catalyst behind the movement, both good and bad, in the distressed market on Wednesday, traders said, especially two companies that continued to climb and one exploration and production company that dropped after announcing poor fourth quarter earnings.

Hospital operator Community Health Systems, Inc. slowed down in comparison to Tuesday’s session but continued to gain across the board in its distressed bonds after the company announced positive quarterly results after the long weekend.

Seeing a similar trend were satellite telecommunications company Intelsat SA’s Jackson- and Luxembourg-linked bonds, which a trader said continued to move up in anticipation of the company’s earnings.

Those are expected to be released next week.

Bucking the winning trend were a series of Ultra Petroleum Corp.’s distressed notes, which were “down a bunch,” a trader said, after the E&P company announced a loss in the fourth quarter.

Avaya Inc. “keeps leaking,” as one trader put it, and was down marginally in one of its distressed bonds, iHeartCommunications, Inc. was up slightly to finish the session in a bond that was unchanged on Tuesday, and a few other idiosyncratic issues traded tight on the session.

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