Eircom bonds traded up sharply in early trading yesterday, the first day traders were free to trade after the company's debt auction closed.
Bonds gained to trade at as much as 102.5pc of face value, compared to an issue price of 100pc of face value.
Traders said a number of so-called "fast money" accounts used the price rise to flip bonds within hours of buying the new debt.
The trading and earlier bond auction is a sign of the level of demand in the bond markets, driven by cheap money flooding in to markets as a result of loose Central Bank policies across much of the world. Eircom raised €350m on the bond market on Thursday at an interest rate of 9.25pc, making its bonds among the highest yielding for euro-area corporate bond investors.
Meanwhile, Eircom announced the sale of its PhoneWatch security alarm monitoring service to Sector Alarm of Norway as the companies looks to focus on its core telcoms business.
Customer contracts remain in place and business will continue as usual under the new owners, Eircom said.
PhoneWatch has been around since 1991 and is installed in more than 100,000 homes and businesses.
In its home markets of Norway and Sweden, Sector Alarm covers more than 200,000 homes.