At the risk of stating the obvious, it's safe to say that the market was engrossed with WorldCom's admission to more than $3.6 billion of accounting fraud and the subsequent fall out in the bank and bond markets. The company's $2.64 billion termed-out paper was quoted in the 12-16 range and the bids for the company's $3.75 billion paper set to expire on Sunday were quoted down to 15-18, but neither traded. The paper had been trading at 81. Calls to Brad Burns, company spokesman were not returned by press time.
Adelphia Communications filed for bankruptcy this week, but because investors had been anticipating a Chapter 11 reorganization, the levels for its different bank facilities did not fluctuate drastically. Traders said that trading was quiet but noted that some Century Communications paper moved in retail. The paper was believed to have been traded in small pieces in the 75-80 context, from the 79-80 range last week. An Adelphia spokeswoman could not be reached by press time.
In other distressed market news, Dennis Lafferty, distressed loan trader, is the latest player to leave Goldman Sach's loan desk. Market sources said that he would be joining Deutsche Bank next week. Officials at Goldman did not return calls by press time.