There were two trades of The Finova Group's '01 paper early last week, with about $10 million changing hands at 74, dealers reported. It marks the third consecutive week of trading in the name, as market players found a bright note in the high-yield market to add to the list recent reasons to trade in the debt. A consultant's study four weeks ago prompted an uptick for Finova and investor confidence grew when Warren Buffet took an interest in the company's debt. A company spokesman did not return calls for comment. One trader said overall market confidence is now helping the name. "We're certainly seeing a minor rebirth of the high-yield bond market since last week or so," said a market watcher. "There's a sense of relief in the market, with the Federal Reserve's interest rate cut helping a huge amount. We're also seeing new money come into the market."
Bids were down to the mid-60s late last year as skepticism rose about Leucadia Capital Corp.'s $350 million investment in the company (LMW, 12/18). Levels rebounded into the low 70s as news of PricewaterhouseCoopers' review of the asset return on the company was positive (LMW, 12/25).