Nextel Communications was an active mover in the secondary market last week as the company came out with bullish statements for its performance in 2003. Traders said a plethora of paper from all tranches of the company's bank debt was bought by retail investors and traded in the street. Pieces of the "B/C" tranches were said to have changed hands between the 94 7/8 95 3/8 context, up from the 93 level.
One market player suggested that the rally in Nextel came with the overall positive tone in the market. He suggested that investors were looking to put their money to work and bought into Nextel in a rash of trades because it is a name with which they are comfortable.
"These are classic go-go names and as the market goes up, these are going to be the ones that go up first," he noted. A dealer questioned the high levels to which the paper had climbed. "I like it, but I wouldn't buy it up at these levels. I think it's going to be running out of steam," he said. Company officials could not be reached by press time.