Lyondell Chemical's term loan "E" regained ground last week, changing hands in the 100 1/4 context after dipping below par the previous week. One trader said that technicals had caused the rally. "People thought the name had value at 98," he added. Others noted that the bank debt had risen with its bonds and market expectations for an economic recovery. "I don't even know why it was trading under par," another trader exclaimed.
Two weeks ago, Lyondell's "E" paper traded as low as 98 1/2 before ticking back up to the 99 level. The brief drop created quite a stir with market players, who cited general concerns about the chemical sector and the rising price of crude oil and raw materials as the cause (LWM, 8/26). A Lyondell spokesman could not be reached by press time.