The small number of new issues launching in the primary market boosted trading in the secondary last week. Dealers reported trading was generally stronger across the board. A trader said most LIBOR plus 2% deals traded north of par, while sub LIBOR plus 2% deals traded in the 100 5/8-7/8 context. He said second-lien deals traded on average at 102. One of the names that traded up was Hertz's $2 billion term loan, which climbed a quarter of a point to 101 3/4. The credit had been stuck at 101 1/2 since breaking in December. Georgia Pacific's $2.5 billion second-lien term loan traded up to 102 1/8; the credit was trading in the 101 7/8-102 context a week before.

A trader said the large number of collateralized loan obligations coming into the market has also created more demand for paper, boosting overall trading levels. The trader noted that the higher trading levels will likely result in more issuers re-pricing first-lien paper, which generally has no call protection. He said first-lien deals that are repriced can lose up to a point in trading. Second-lien deals can generally hold pricing because they usually contain call protection.

No market player seemed able to pinpoint exactly why the primary market was so quiet; one said it was just the lapse of time between the gigantic deals early in January and the large forward looking calendar. A number of leveraged buyouts and acquisitions have been announced and it is now just a matter of when the financings will come to the market. "It would be nice to see [them come to market] because pressure on secondary prices is high," one portfolio manager said. It's a really crazy time, really difficult because the cash is there and primary deals are not."

The forward calendar will feature financing for the LBOs of Burlington Coat Factory and The Sports Authority, and the acquisition of Alcan assets by Ball Corp., among others. The financing for Europe's largest-ever LBO, the $12 billion buyout of TDC by Apax Partners, Kohlberg Kravis Roberts & Co., The Blackstone Group, Permira Advisers and Providence Equity Partners, is also expected to come to market soon and one investor is anticipating a dollar portion for the deal.

The past two weeks, from Feb. 20 to March 2, primary market syndicated loan activity has dropped, according to Dealogic. For the week of Feb. 27, there were only 12 deals syndicated with a value of $10.5 billion. The previous week saw a higher volume of issuance at $33.9 billion, with 22 deals. The four weeks prior, beginning with the week of Jan. 23 and running through Feb. 19, there were 44, 68, 40 and 42 deals launched, respectively.