DISTRESS WATCH: Chipmaker Rout Hits Wolfspeed Convertible Bonds

Wolfspeed saw more of its convertible bonds drop into distress territory last week after a rout that hit chipmakers globally.

Investors are pulling money away from semiconductor manufacturers as the push into artificial intelligence has yet to pay off. While the selloff was more pronounced on equity markets, convertible bond prices for US-based Wolfspeed sank to about half of face value, adding $1.75 billion to the global distressed debt pile.

Globally, the dollar amount of bonds and loans in the Bloomberg News distressed debt tracker declined for a fifth consecutive week, falling 0.6% in the week ended July 26 ...