Advanced Micro bonds gain ground; Chemours falls on Citron report; oil and gas debt mixed

By Stephanie N. Rotondo

Seattle, June 2 – Distressed debt investors were pushing around names like Advanced Micro Devices and Chemours Co. on Thursday.

Fresh news was behind the activity, according to traders.

For Advanced Micro, it was reported Wednesday that the semiconductor maker had priced its new virtual reality graphics chips. Pricing was cheaper than expected, which resulted in the company’s stock getting crushed.

The bonds, however, improved, helped in part by comments made by Lisa Su, chief executive officer, regarding the company’s aims to return to profitability.

Meanwhile, Chemours debt dropped as Citron Research – the same Citron behind “that really negative report on Valeant,” a trader said – predicted the company would enter bankruptcy in the next 18 months.

Away from those names, the energy sector continued to be in focus, as an OPEC meeting in Vienna failed to result in a production curb.

Still, domestic crude ended flat on the day. As for the sector’s debt, it was mixed.

A trader said California Resources Corp.’s 8% second-lien notes due 2022 improved a point to 73, though the 5% notes due 2020 slipped half a point to 55.

In Chesapeake Energy Corp., a trader saw the 8% second-lien notes due 2022 rising almost a point to 80 7/8. Another market source pegged the 6 5/8% notes due 2020 at 67 bid, up over a point on the day.

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