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Cabot Money Management is buying callable agencies to pick up extra yield over comparable bullets.

The recent rally in high-yield bond prices should stem the flow of funds out of high yield, said Chris Garman, head of high-yield strategy at Merrill Lynch.

--Arturo Cifuentes commenting on a London Business School report on insider trading by banks operating in the credit default swap market.

A refinancing boom caused by rallying Treasuries could in turn spark more buying of interest-rate swaps and Treasuries as investors hedge against prepayment risk in the mortage-backed securities market.

The glamour of being a primary dealer--historically a prestigious designation in the bond market-- is waning as growing direct bids in Treasury auctions chip away at the dealership's competitive advantage.

The recent rally in high yield as well as last week's drive-by deals such as Station Casinos' $200 million of 6 7/8% notes has junk players speculating the forward calendar could reload in coming weeks.

M&G Investment Management is selectively adding to double-B bonds with a focus on rising stars, according to David Fancourt, fund manager in London of M&G's £1.1 billion high-yield corporate bond fund.

Widening discounts have hit corporate loan closed-end funds as investors fear a change in the credit cycle and an ending of Federal Reserve tightening.

Rabobank has expanded its U.K. structured credit group with two new hires in the past month and is hunting for a third staffer to add to the team of nine.

Morgan Stanley has promoted Nick Tranter, managing director and head of equity derivative sales for the U.K. and Ireland, to head of equity derivative distribution for Europe.

Anyone with the slightest interest in Chinese financial markets could not have missed the announcement of the Provisional Rules Governing Derivatives Business of Financial Institutions on 4 February 2004.

Some fund-linked derivative players are looking to start a secondary market for the underlying funds used in hedge fund indices.