Two par name staples bounced around last week, dropping early and then recovering late in the week. Nextel Communications traded down to 88 from 89 1/4-90 1/2 in a small $2.5 million trade Wednesday. But by Thursday, Nextel began to climb to 88 3/4 early in the day and later $2.5 million traded at 89 1/16. Another $5 million of Nextel traded at 89 1/4 in the late afternoon, said one dealer.
Allied Waste paper took a similar path. The trash hauler's bank debt traded down to 98 1/2 from 99 1/4-99 1/2. An estimated $2.5 million trading Wednesday, with Citibank tabbed as the suspected buyer, although one trader said, "Everyone's in it." Citibank officials did not comment. No trades were reported Thursday, but one trader said bids on the paper were firming following a stronger equity market.
In other par names, bids onRite Aid dipped from the 99-100 range to 98 1/2 despite the highest consumer confidence numbers coming out since August. Traders said the retail sector remains soft. "Most people do not consider consumer confidence to be a good indicator," one dealer explained. Additionally, about $12 million of AES Corporation AES' term loan traded at 92. Buyers and sellers could not be determined. Calls made to the companies were not returned by press time.