Service Corp. International saw its 6% notes of '05 (B1/BB-) drop nearly two points to a bid of 88 after the unexplained resignation of Jerald Pullins, coo of the funeral services provider. A successor has been chosen from within the firm.
Chris Bauders, analyst at Raymond James & Co., says the bonds are money good. "I recommend the bonds on a spread basis. They provide good value for investors looking for yield in a defensive, recession-resistant business," he says. He notes that Service Corp. has been paying down debt significantly through the use of foreign asset sales and recurring free cash flow.