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Off with their heads...Dan Loeb, of Third Point Management Company, is calling for the resignation of Leonhard Dreimann, ceo of Salton, makers of the George Foreman Grills, and Irik Sevin, ceo, president and chairman of Star Gas Partners, a heating oil distributor (see story, page 2).

Dan Loeb, the outspoken partner of Third Point Management Company, is calling for the resignation of chief executive officers of two companies in which his hedge fund has stakes.

The emergence of hedge funds and other lenders in the middle market has created a new pool of financing for companies in need of cash, but in some cases those loans prolong the inevitable move to bankruptcy and hamper recoveries in the long run, according to panelists at a distressed debt conference last week.

Third Wave Global Investors, a new macro investor run by a former global chief investment officer at Credit Suisse Asset Management, is expected to open up to outside investors in the next few months and plough new money into the fixed-income market, according to an individual familiar with the manager's plans.

At least half a dozen corporate bond professionals in sales, trading and research have departed Morgan Stanley this month in what market participants say may be the tip of the iceberg.

S&T Wealth Management Group is adding yield by buying callable intermediate-term agency debentures, said Chuck Frank, v.p. and senior portfolio manager.

Nomura Securities International has hired a junior agency trader and lost a junior structured finance analyst.

Third Point Demands That Salton's CEO, Leonhard Dreimann, Gets the Boot

This chart, provided by Citigroup Global Markets, tracks bid-ask prices for par credit facilities that trade in the secondary market.

Protests from second-lien lenders forced Credit Suisse First Boston to rework the terms of Oriental Trading Company's proposed dividend deal last week.

Mr. Irik P. Sevin Chairman, President and CEO Star Gas Partners L.P. 2187 Atlantic Street Stamford CT 06902 Dear Irik: Third Point LLC ("Third Point") advises certain entities that hold 1,945,500 common units in Star Gas Partners L.P. ("Star Gas" or the "Company") (NYSE: SGU - News). Our 6% interest in the common units of the Company makes us your largest unitholder. Unlike the poor, hapless retail investors "stuffed" with purchases at the $24 level (many of whom are party to class action lawsuits against you personally and against the Company), we purchased our stake around these levels and took profits on about 500,000 shares near the $7.00 per unit level.

F&C Asset Management in London is looking to scale back the number of high-yield holdings from 110 to closer to 70 in the coming months, according to Roman Gaiser, investment manager responsible for the firm's €1 billion in European high yield.