Hedge funds were buying the bonds of Northwest Airlines and Delta Air Lines, betting there would be a significant bounce back when they emerged from bankruptcy. [Northwest's debtor-in-possession financing broke in late August, with the $975 million term loan breaking at 100-100 1/2. In early September Delta's bonds climbed as the company made progress terminating its pilot pension plans. Its '29 notes climbed two to three points to 26 1/2 after the judge overseeing its restructuring granted approval to terminate the pension plans.]
One Year Ago In The Credit Markets
