Junk bond investors have rallied behind NTL, the indebted UK cable company, after its debt fell to all-time lows on Wednesday in the midst of cable contagion.

NTL's bonds rose as much as 15 cents in the dollar on Thursday morning thanks to strong buying from an Italian mutual fund, traders said, estimating that the fund bought up to €20m ($17.5m). The bonds rose above 60 cents in the dollar, having hit a low of 43 cents - near distressed-debt levels - on Wednesday.