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Credit Suisse First Boston's mortgage-backed securities trading desk is lighter in its wallet and its workforce.

High-yield issuers are planning to sell more dividend deals in the coming weeks, according to bankers, who note that investors are willing to gobble up the higher-yielding instruments despite the obvious drawbacks.

Loan trading desks were strangely empty last Wednesday, but it was unclear whether the snow, spring break vacations, or green beer was the culprit.

The primary market roared back to life last week as borrowers took advantage of declining yields on Treasuries and narrow spreads on corporates.

Baillie Gifford will reduce its roughly £70 million position in asset-backed securities on the back of proposed U.K. legislation that would make it more expensive for insurance companies to hold certain bonds and could induce spread volatility.

Smith Breeden Associates will add to positions in corporates and mortgages if and when spreads widen.

--Art Frank, director and head of mortgage-backed securities research at Nomura Securities International, referring to the debate on setting up an independent regulatory authority to oversee Fannie Mae and Freddie Mac.

SunAmerica Asset Management will buy an unspecified amount of Ginnie Maes if the yield on the 10-year Treasury rises to 3.9%.

A U.K. issuer is taking steps toward selling a covered bond that is in part backed by commercial mortgages, according to a senior director at Fitch Ratings who has received an inquiry about rating such a deal.

Tyler Wolfram, a partner with Oak Hill Capital Partners, on Caribbean Restaurants' new credit facility, which backs a dividend to the sponsors.