A $10 million piece of Owens-Corning's bank debt traded at 62 1/2 last week, reportedly in an auction, but traders could not confirm that one took place. The company's levels have jumped around over the last couple months, spiking from 61 to 65, then settling in the 62 range. Owens-Corning, based in Toledo, Ohio, is one of the world's largest fiberglass manufacturers.
Levels have been flat over the last few trades. Dealers say this indicates there's been no event triggering the swapping, but say the selling does point to lingering anxiety over asbestos-related credits. "The only thing you can say is that the more paper trades, the more concern there is," a dealer noted. "It really has nothing to do with credit quality." Owens-Corning is in Chapter 11 bankruptcy. With USG Corporation's Chapter 11 filing earlier this month, the liability falls on Crown Cork & Seal and Owens Illinois, the last remaining asbestos-related companies that haven't filed.