The secondary loan market was given a boost last week on the back of the massive influx into the high-yield bond market. AMG Data Services reported a record $3.3 billion inflow for U.S. junk bond mutual funds in the week ended Aug. 27. "Cable, wireless, rural are all higher," said one trader.
He noted Nextel Communications is trading above par at 1003/8 to 1005/8. In addition to the bond influx, the name is benefiting from news that Warren Buffett's holding company Berkshire Hathaway bought at least $320 million of bonds and preferred stock since the beginning of 2002. Other names that are said to have risen include energy companies such as Dynegy and AES Corp.