Tyco International's February 2003 bank debt traded in the 87-89 range last week, down from the 94-95 level the previous week. Dealers had opposing views on what was causing the paper to move. One said that market players were worried the company would not be able to complete its spin-off of the CIT Group because of the weak equity market. Another pointed out that trading levels for the bonds have fallen an average of 15 points, causing pressure on the bank debt. But others suggested that the downturn had more to do with a cloud of suspicion hanging over any company that had a hint of accounting issues. Calls to the company's spokesman were not returned by press time.
Tyco Falls For Various Reasons