Nextel Communications gave the market the best news it has had in some time with an extremely positive earnings call last Tuesday, which traders described with strongly- worded adjectives such as "heroic." The 9.375% notes of '09 (B3/B) went as high as 72, before settling at 68 by Thursday afternoon. They started the week at 59.5. Other wireless bonds also got a lift on the news. The Airgate PCS 13.5% notes of '09 (Caa1/CCC) were up four points to 28.
Tom Parker, portfolio manager at Barclays Global Investors in San Francisco, says Nextel did a much better than expected job of reducing debt. "It's been a long time since there's been good news on a bond everybody owns. It really helps create a positive tone for the whole market," he says.