The focus last week was again on the primary market, as issuers pushed to sell deals before the end of the year and before an anticipated slowdown toward the middle of this week. At least 20 deals were priced in the last week or so and most were trading up about two points on the break. Here was selected action in the secondary market.
Goodyear Sings Volatility Blues
Goodyear Tire's bonds continue to be extremely volatile. Its 7.85% note of '11 rose to 93.125 early last week, up from 86, before dropping to 88 on Thursday. One analyst at Merrill Lynch attributed the seesaw ride to talk of accounting difficulties at the tire company, as well as a recent announcement that the company will delay a quarterly filing.
AK Bonds Are A Real Steel
AK Steel' 7.75% notes of '12 rose to 80 last Thursday, up from the high 60s just two weeks ago, according to traders. The rally is due to broader factors in the steel industry, which is experiencing rising prices and increasing demand, according to a Banc of America Securities analyst. AK Steel also had some new contracts come through which helped lead bond prices higher.
Autoparts Co. Paper Revs Up
Bonds of Collins and Aikman, an automotive parts company, rallied 10 points. Its benchmark 11.5% notes of '06 traded as high as 90 toward the end of the week, up from the low 80s a week earlier. The move higher was due to speculation that the company will refinance the notes.