Securitization People and Markets

Robert Sweeney, a veteran high-grade energy analyst, left Putnam Investments last Thursday and will join BNP Paribas as a director in its investment-grade research effort. Sweeney declined comment andJoe Labriola, head of research at BNP, did not return calls. It is assumed, however, that Sweeney was brought in to replace Dan Scotto, who was released from the firm last year (BW, 5/20). Individuals familiar with Sweeney's thinking on the matter say that he has made it perfectly clear to them that widely discussed turmoil within Putnam's bond operations this year is the reason for his departure. Calls to Paul Quistberg, Putnam's head of fixed-income research, and Stephen Peacher, cio, were not returned.

David Howard, managing director with Fitch Ratings, left the rating agency for Financial Guaranty Insurance Company, a provider of insurance for structured finance products, asset-backed securities and municipal bonds. His new title is chief risk officer. He will report to Debbie Reif, ceo. Howard says he replaces Greg Raab who will head up the structured finance group at FGIC.

Kathleen Lamb, a healthcare analyst from Credit Suisse First Boston who regularly places near the top of the rankings in the high-yield healthcare sector on the Institutional Investor All-America Fixed-Income Research Team, will retire in June, according to an official at the firm. She will be replaced by Graham Barnett, who had been working on the origination side at CSFB. Neither Lamb nor Barnett returned calls.

The cable sector continued to dominate trading, though slightly less than in the previous week. New issue activity picked up as deals from Roundy's,Sybron Dentaland Trico Marineall traded up after issue. Here was other selected action.

High-yield investors are increasingly looking at high-grade issues in the secondary market, finding that in many cases, they offer an opportunity to move up in credit quality while picking up extra yield. Ben Renshaw, an analyst at MacKay Shields who follows the healthcare and media sectors, says the volatility in the cable sector associated with the travails of Adelphia Communications has made high-grade names such as Cox Communications (Baa2/BBB), Comcast Corp. (Ba1/BBB-), Cablevision Systems Corp. (Ba3/BB- senior subordinated) and AOL Time Warner (Baa1/BBB+) worth a look. "You've got single-B healthcare names trading in line with triple-B cable and media names," he notes, pointing to Triad Hospitals 8.75% notes of '09 (B1/B-), which were trading at 266 basis points over Treasuries last Thursday, while the Cox 6.75% notes of '11 were 265 basis points off the curve. He says MacKay Shields is still determining in which of the four cable names it will invest.

Attorneys representing Bear Stearns and Deutsche Bank were in a New York State Supreme Court last week attempting to sort out a dispute over three fixed-income analysts whose employment status is in limbo. At issue are gardening leave provisions in the analysts' contracts, which prevent them from leaving Bear Stearns for a competitor for a specified period of time, says Ted Meyer, a Deutsche Bank spokesman. Meyer says that while Deutsche Bank had hoped for a resolution last Wednesday, nothing had been settled as of last Thursday evening. Alan Gelb, an attorney with Jones Hirsch Connors & Bull, which is representing Bear Stearns in the matter, did not return calls.

Douglas Colandrea, an investment-grade telecommunications and media analyst, has left Morgan Stanley, where he was an executive director. He will join Bear Stearns in mid-June, according to people at both firms. Colandrea declined comment when reached on his mobile phone. Mike Hyland, head of research at Bear Stearns, did not return calls, nor did Bill Reiland, director of U.S. credit research at Morgan Stanley. Morgan Stanley has not yet announced its plans regarding his replacement, says an analyst at the firm.

Douglas Colandrea, an investment-grade telecommunications and media analyst, has left Morgan Stanley, where he was an executive director. He will join Bear Stearns in mid-June, according to people at both firms. Colandrea declined comment when reached on his mobile phone. Mike Hyland, head of research at Bear Stearns, did not return calls, nor did Bill Reiland, director of U.S. credit research at Morgan Stanley. Morgan Stanley has not yet announced its plans regarding his replacement, says an analyst at the firm.

The $84 billion New York City Retirement Systems will soon issue request for proposals for high-yield bond managers to handle about $4 billion for contracts that are set to expire in June 2003, according to BW sister publication Money Management Letter. One individual familiar with the plans said that the searches would be for managers to handle assets from all of the city's five retirement plans: The New York Employees Retirement System, The New York City Teachers' Retirement System, The New York City Police Pension, The New York City Fire Pension, Police & Fire Variable Funds and The New York City Board of Education Retirement. Horatio Sparkes, assistant comptroller for pensions, declined to comment on the situation.