Clear Channel continues to rally ahead of improved results

Traders who bid up Clear Channel bonds on Friday made the right call. The big high yield name announced a much reduced trading loss late on Monday, losing only $34 million in the third quarter.

The credit continued to rally yesterday after Friday’s big moves. It 6.25% 2011 bonds traded as high as 70 cents in the dollar on Monday afternoon, up around three points on the day. The credit also tightened in the credit default swaps market, moving more than three points tighter to 46/48 point up front +500bp, according to CMA DataVision.