Resources

AMKR – Base Case CDS 95bps, Base Case iCDS 84bps, Negative Case iCDS 124bps, 2027 6.625% Bond YTW of 5.032%, iYTW of 4.939%, Ba2 Rating from Moody’s, IG4+ (equivalent to Baa1) Rating from Valens, Low Refinancing Need

December 12, 2024

  • Cash bond markets are accurately stating credit risk with a YTW of 5.032% and a CDS of 95bps relative to an Intrinsic YTW of 4.939% and an Intrinsic CDS of 84bps. Meanwhile, Moody’s is overstating AMKR’s fundamental credit risk, with its Ba2 credit rating four notches lower than Valens’ IG4+ (Baa2) rating.
  • Incentives Dictate Behavior™ analysis highlights mostly negative signals for credit holders. That said, as a positive, management members have low change-in-control compensation relative to their average compensation, indicating they are unlikely to pursue a takeover or accept a sale of the company, decreasing event risk for creditors.
  • Earnings Call Forensics™ of the firm’s Q3 2024 (10/28/2024) earnings call highlights that management is confident they saw quarterly record SiP business revenue and that production initiatives in Vietnam will expand their geographic footprint

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email client.relations@valens-research.com.

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683