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Nextel Communications' bank debt rallied last week as the company came out with promising earnings results. A trade was rumored to be completed as high as 89 1/2, but most traders quoted the paper in the 88 1/2 - 89 range. The paper had begun to inch up the day before earnings were released in anticipation of strong results. "Historically, they've always beat expectations," one dealer said of the early activity.

Chris Albanese, a high-grade corporate bond salesman, recently joined Nomura Securities International in New York. Albanese declined to comment other than to say that he had joined Nomura. It is believed he will report to Josh Edelson, national fixed-income sales manager at Nomura. Edelson referred calls to Susan Atran, a Nomura spokeswoman. She did not return calls by press time. Albanese's last position was in corporate bond sales at Barclays Capital. Walter Derish, head of Barclays U.S. corporate bond sales in New York, did not return calls. Prior to joining Barclays, Albanese worked at Credit Suisse First Boston and PaineWebber.

Moody's Investors Service has downgraded Panavision's $290 million in secured credit facilities from B3 to Caa1 in the wake of a failed recapitalization effort. With high leverage levels, cash flow constraints and performance below management projections, Moody's expects the Woodland Hills, Calif., company's liquidity to come under pressure by the end of this year. Panavision would need a substantial equity injection or a broader-based balance sheet restructuring in order to remain stable.

* "You probably should not forecast. But if you do forecast, never do it in writing. But if you do put it in writing, revise your forecast often."--Edward Altman, Max L. Heine professor of finance at New York University, referring to his belief that the default rate has peaked.

Standard & Poor's is looking to fill three senior analyst positions for its New York-based CDO group, says David Tesher, managing director in charge of cash flow transactions. One analyst would focus on collateralized fund obligations, or "CFOs," as well as private equity-backed CDOs and would report to Richard Gugliada, managing director who heads the entire CDO group. Another senior analyst would rate synthetic CDOs, also reporting to Gugliada. The third would be a quantitative analyst, reporting to Sten Bergman, director.

Moody's Investors Service believes the waterworks business will see continued demand--even in a tough economy--and therefore the rating agency has assigned a B1 rating to the proposed $325 million credit facility of National Waterworks, the largest distributor of water transmission products in the U.S. A $200 million senior subordinated note offering, which also is being used to fund J.P. Morgan Partners' and Thomas H. Lee Partners' $620 million acquisition of the business from United States Filter, has been assigned a B3 rating.

The European Bank for Reconstruction and Development is in the market for a head of credit investments, say officials familiar with the search. It could not be determined if this position is pre-existing or newly created. Calls to Ayesha Shah, head of treasury, were not returned by press time last Thursday. The new hire will be responsible for fixed-income investment strategy and the bank's portfolio management team as well as for expanding the bank's investment opportunities.

Several European banks are said to be considering project finance collateralized loan obligations. A number of London-based bankers and analysts say banks are exploring project finance deals for balance sheet management and capital relief purposes. ABN Amro and Deutsche Bank are among the banks said to be considering such deals. After Basel II comes into effect, project finance loans will attract greater capital requirements, notes one structured finance expert.

The bank debt of Express Scripts traded at 99 in the Street, following reports that Aetna will be terminating its pharmacy contract with the company. The paper had been trading in the 99 3/4 context prior to the news, and it had even rallied a bit immediately following the trade. But by week's end, the market for the name had slipped into the 98 1/2 99 range.

FMC Corporation has secured a $500 million credit facility that includes the company's first-ever "B" term loan. According to Eric Norris, director of investor relations, the Philadelphia chemical company decided to tap the institutional market for additional lending flexibility. "[An institutional loan] is a very viable source of capital for us," Norris said, explaining that the term loan provided the company with the additional capacity it needed. He further noted that an institutional lender is a "harder sell" than a relationship bank. "The term loan folks are much more nuts-and-bolts, dollars-and-cents oriented," he added. However, he affirmed that FMC was pleased with the final outcome of the deal, particularly considering the currently difficult credit market.

Tyco International's February 2003 bank debt was stronger last week, with pieces trading in the 96-96 1/2 context. The paper rallied along with its stock despite reports that the company would have to restate three quarters worth of earnings. Some market players noted that some restatement was expected and that it wasn't as bad as people thought it could get. "If you read the news, it was actually a positive even though the headline sounded really bad," one market player said. Calls to Tyco were not returned by press time.

Touching upon a subject that, in the words of one portfolio manager, has the market up all night, Laura Unger, former acting chairman of theSecurities and Exchange Commission, offered a tongue-in-cheek discussion of the five basic rules for steering clear of regulation. "Sound valuation is the key to transparency, which is the key to a healthy marketplace," she said, citing valuation as the most important factor for maintaining freedom from regulation. To obtain solid valuation, Unger recommended that loan market players employ a method that is above all reproach. "You will never be criticized for marking to market," she said.