Wyndham International's bank debt slumped in the secondary loan market last week. Traders said the company's "B" loan traded down roughly four points into the 841/2 range from the 881/4 context where it was moving two weeks ago. Pressure on the paper came from market technicals rather than credit fundamentals, the traders explained. There are more sellers than buyers and "storied" names were receiving a dose of pressure last week, one dealer noted.
As the high-yield market continues to receive a stream of bond deals, there are more options for investors to put their cash to work, the traders said. Par players are mostly filled up on Wyndham and the hedge funds that normally invest in the paper have alternatives, noted one trader. Judy Hendrick, Wyndham's treasurer, did not return calls.