Owens Corning and Armstrong Holdings climbed higher as President George Bush urged Congress to put forward a response that would solve the asbestos issue. Owens Corning pro rata bank debt traded around 90-92 and Armstrong's bank debt traded at 74-75.
After the Presidential election the market adopted a more bullish view toward the outcome of asbestos settlement and tort reform (LMW, 12/6). Since then Owens Corning's bank debt has climbed from the 75-78 range and Armstrong's bank debt from 68-70.
At the time, the market expected a Republican majority would make the Senate more favorable to asbestos names. Indeed, Sen. Tom Daschle's (D-S.D.) failed reelection bid was also said to be interpreted by the market as a positive event. "People perceived him as obstructive to the settlement," a trader said.