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The Warnaco Group's bank debt has been generating more interest as the company winds down its bankruptcy proceedings. Dealers said a plethora of paper has been trading in the 33-35 context over the last couple of weeks as investors looking for an equity play buy into the paper. Banks and other firms not wanting to hold the equity are selling the name. By last Thursday, the paper was offered as high as 36 1/4 in the street.

At least two sell-side analysts say the recent plunge in the bonds of Sprint Corp. is unjustified. Investor fears have been stoked by a recent article in The Wall Street Journal which argues that the long distance carrier may face network blackouts or a significant drain on its cash reserves as some of its wireless affiliates struggle to remain solvent, says Tim Caffrey, analyst at Barclays Capital. The company was also the subject of a number of nervous questions during a Moody's Investors Service conference call last week. It is rated Baa3, the agency's lowest investment-grade rating, and has a negative outlook. If Moody's drops the company to junk, it would force a number of portfolio managers to sell the bonds, as many are not allowed to own high-yield credits.

Spain's Bankinter is debating whether it will issue a securitization of loans to small- and medium-sized enterprises (SMEs), says Jose Enrique Renedo, a Madrid-based member of Bankinter's capital markets group. A decision on whether to go ahead with such a deal will be made in the coming months and will depend on the bank's funding needs as well as its ability to secure a guarantee on the loans from the Spanish government, says Renedo.

John Hudson has left Goldman Sachs, where he was a high-yield analyst covering the metals and mining sector, to join a hedge fund, according to other high-yield analysts on the buy- and sell-sides. Hudson has been the top-ranked analyst in his sector on the Institutional Investor All-America Fixed-Income Research Team for five consecutive years. The name of the hedge fund could not be determined, but it is believed to be near Hudson's home in Princeton, N.J. Hudson could not be reached.

Hospital rebuilding and refurbishment projects for the U.K.'s National Health Service are set to become a large source of securitization deals. While there are a huge number of projects out for bid nationwide, bankers say only those above the £100 million mark make sense for securitizations.

Structured Credit Partners (SCP), a wholly owned subsidiary of Wachovia Securities, is ramping up a $500 million real estate collateralized debt obligation for pricing in the middle of next month, says a CDO market participant. Wachovia will be the underwriter for the deal. Mark Adamson, CDO syndicate head at Wachovia in Charlotte, declined to comment. Price talk was not available at press time last Thursday. The notes will be backed by a diversified pool of collateral--60% of which will be REITs and 40% commercial mortgage-backed securities. Called Crest 2003-1, this is the eighth "Crest" deal issued since the program began in 2000. Crest stands for "Commercial Real Estate Structured Transaction."

Moody's Investors Service has placed the Ba2-rated bank debt of Moore North America, a wholly owned subsidiary of Moore Corp., on review for possible downgrade following the announcement that the company has signed a definitive merger agreement to acquire Wallace Computer Services. In contrast, Standard & Poor's has placed the company, which it currently rates BB+, on CreditWatch with positive implications. S&P said that the combined entity, Moore Wallace, would have a stronger business risk profile.

Ambac Assurance Corp. has added Quan Do as a modeler for its cash flow collateralized debt obligation group. Do, who started two weeks ago, reports to Scott Gordon, managing director who runs the structured finance CDO group. The position is newly created because demand for financially guaranteed CDOs is growing, says Gordon. Do joins from Lehman Brothers where he also worked as a CDO quant. He reported to Mark Zusy, managing director. Zusy did not return calls seeking comment on the firm's potential replacement plans.

American Tower Corp.'s bank debt was one to two points stronger this week as the company announced that it would pursue some $420 million in new financing. Proceeds will be used to pay down $200 million of the company's term loans and possibly to deal with roughly $210 million of convertible notes that are puttable Oct. 22. Dealers and buysiders quoted the market for the company's "B" loan in the 94 3/4 to 95 3/4 range and a small piece is believed to have changed hands in the 95 context. The funds will be raised through an issue of 123/ 4% senior subordinated discount notes due 2008 and warrants to purchase Class A common shares of American Tower.

Owens Corning's bank debt was a few points lower this week after the company filed its plan of reorganization and a couple of lenders were looking to unload the name. A $20 million piece was believed to have changed hands around the 63 1/2 level early in the week and a $5 million piece was said to have traded at 64 1/4 later. Neither trade could be confirmed. The name was softer after the company filed its reorganization plan because asbestos liabilities were larger than expected, according to traders.

CRT Capital Group, a research and brokerage firm based in Stamford, Conn., is actively seeking a trader and three or four salespeople this year to ramp up its presence as a specialized brokerage firm in the loan market. The salespeople will cover banks, insurance companies, and other primary lenders that are looking to sell pieces of specific credits, said Michael Vaughn Jr., managing member of CRT.

Casella Waste Systems broke into the secondary market last week with traders quoting the company's new "B" piece in the 100 3/8-100 3/4 range. Small pieces changed hands in that context. The new facility consists of a $175 million revolver and a $150 million term loan "B" (see story, page 3). The company is also completing a $150 million offering of 93/ 4% senior subordinated notes due 2013.