A $10 million piece of Owens Corning's bank debt traded in the 70-71 range, notching down about a point from previous levels. One dealer speculated levels were even softer, closer to the 69 context. Traders said distressed trading was even more sparse than par activity, but that buyers were looking into credits which were defensive and could show a return. They put Owens Corning in that category because there was increasing demand for the paper even before the Sept. 11 attack. A dealer explained that the bid moved higher than the offer for Owens Corning last week, sparking the trade. "It traded because there was a lot of demand pre [the attack]," a dealer explained. Owens Corning is a fiberglass manufacturer based in Toledo, Ohio.
Another dealer explained that funds are looking for opportunity right now. "They want to buy cheap and take advantage of the market right now," he said. "Sellers are wondering if we're going into a deeper recession. The slowdown is a result of the tragedy. People are trying to sort these names out." Owens Corning's bank debt was trading in the 621/ 2 range last July then notched up to 70 in early September, with dealers noting increasing favor for asbestos credits (LMW, 7/8).