WorldCom's bank debt levels sunk even further last week, although no trades could be confirmed. Bank debt players said bids for the name sunk as low as the 19 level before rebounding into the 21 range. The reason for the drop, traders said, was purely a case of buyers lowering their price because of a number of sellers in the market. "Once there is the perception of [sellers], bids will back off," noted one banker. Market players buzzed once again last week about a phantom $200 million seller. Whether the seller existed or a trade was ever completed could not be determined. Other market players re-emphasized that bids for WorldCom fell in sympathy with a weaker outlook for AT&T.
Late last week, reports citing an internal WorldCom document indicated that the sales in certain company divisions were weaker for the second half of 2002 than reported. Market players said this news had no effect on the price of the bank debt. Two weeks ago, the bank debt levels followed the bonds from the 26 range down to the 23 context. A spokeswoman for the company declined to comment.