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Franklin Templeton Investments is seeking to add new euro-denominated high-yield issues and to pick up U.S. high-yield names in the secondary market. Atanas Christev, high-yield portfolio manager, who manages E33 million in mainly euro-denominated high-yield bonds, says he is considering adding the upcoming issue from C.P. Ships. The shipping company has strong positions in the Trans-Atlantic business, and, although shipping is a very cyclical sector, Christev is relatively comfortable with the credit. He says he likes to buy bonds with coupons in the 9% range. "When we get issues that begin to perform very well and yields tighten, we look for replacements," he says. Templeton uses the Merrill Lynch euro high-yield index as its benchmark, because it includes U.S. issuers as well as European ones.

The latest IR On The Net, the weekly e-version of the monthly Investor Relations magazine, contains a sponsor's statement offering the following business advice: "To instill trust over a conference call, it helps to have trust in the conference call." The sponsor banging on about trust? WorldCom.

The Deal Roll-off Chart, provided by Capital DATA Loanware, lists the 50 largest leveraged credit facilities in the U.S. market that are due to mature in the coming month. It is designed to provide a look at potentially available money in the market as credits are renewed or retired.

Paul Roland, portfolio manager with QCI Asset Management, says he will rotate 5% of the firm's portfolio, or $15 million, from agencies into corporates in anticipation of the economy showing signs of recovery, hopefully within three months. He says he will look at signs of inventory buildup and improved final demand as well as a steeper yield curve. He notes that as corporate spreads are wide and the recovery is underway, corporate spreads are bound to come in.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

* "It's certainly the 'in' thing to do."--Thomas Donnelly, senior v.p. at GE Capital, on having an active loan sale program.

Campbell Newman Asset Management is seeking to sell two- to three-year Treasuries in its intermediate and broad market portfolios in order to buy five- or six-year Treasuries. Jeff Bryden, a portfolio manager overseeing $325 million in taxable fixed-income, says the firm wants to take advantage of the steep slope in the short part of the curve. On June 21, two-year Treasuries yielded 2.86%, versus 4.04% for five-year Treasuries, and 4.77% for 10-year Treasuries. Bryden says the trade could represent up to 5% of the assets in the intermediate and broad market portfolios he oversees. He would not be specific about a trigger for the trade, saying only that it is something he is actively considering, depending on his perception of the economy and the holdings in individual portfolios.

Pacific Investment Management Company, the 800-pound gorilla of the institutional money management industry with assets in excess of USD253.7 billion, plans to issue its first synthetic managed collateralized debt obligation. The CDO, named Channel, will be referenced to a USD1 billion portfolio of credit-default swaps and cash instruments, according to a market official familiar with the transaction. Officials at PIMCO and Goldman declined comment.

The Yorkshire Building Society is seeking an assistant treasurer who will have a prominent role in the company's hedging activities. Chris Parrish, group treasurer in Bradford, said the new hire will be responsible for the transactional hedging of its GBP9 billion (USD13.4 billion) fixed-rate saving and loan portfolio. Parrish explained that the building society uses plain-vanilla interest-rate swaps to hedge the notional value of the entire portfolio.

Bruce Nichols, director-equity derivatives trader at Barclays Capital in London, has assumed responsibility for the firm's Eurostoxx 50 book, according to Jerome Bussière, associate director in charge of single stock trading in Europe. The book was previously managed by Arnaud Fransioli, who recently joined Voltrex Options, a specialist derivative brokerage house in London. Nichols confirmed the move, declining further comment.

Credit-default protection on AT&T Wireless Services blew out by roughly 150 basis points last week on fears the company's credit rating could get downgraded to junk status. Mid-market five-year default swaps referenced to the wireless company were trading at roughly 650 basis points late Wednesday, up from about 500bps at the start of the week. The widening occurred despite a generally positive tone in the default swap market due to strong demand from synthetic collateralized debt obligations. "AT&T Wireless has had a rough week, everyone is just real skittish on the sector and the credit," said one trader. Standard & Poor's added to the worries earlier in the week when it issued a negative forecast for the entire sector and said it would not turn around for possibly the next two years.

CIBC World Markets recently moved Takahiro Yamanaka, head of equity derivatives trading in Tokyo, to the head office in Toronto to become an exotic equity trader. The equities pro said he has been with the firm for six-and-a-half years and moved to the Toronto head office for the extra opportunities it offers. He reports to Trevor Radomsky, Canadian head of equity derivatives trading. Yamanaka declined further comment.