A $5 million piece of Allied Waste traded up slightly to 99 7/8. The credit has maintained momentum even as the industry slows. Dealers say there's been no news on the company lately, but that Allied Waste remains one of the safest bets in the market. "When certain credits trade, it just indicates new buyers are coming in or people are managing their exposure," he said, adding, "It's not a super-complicated thing: People have always got to get rid of waste." The trash hauler is based in Scottsdale, Ariz. Calls to Thomas Ryan, cfo, were referred to Mike Burnett, director of investor relations, who did return them by press time.
Allied Waste was trading at 94 1/8 last July, and dealers were predicting the credit would climb as the telecom sector took a hit and players were looking for a safer bet (LMW, 7/20). Dealers also said last week that CLOs are also supporting trading levels. J.P. Morgan, Credit Suisse First Boston and Salomon Smith Barney are the mandated arrangers, according to Capital DATA Loanware.