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A top-ranked sell-side analyst is even more convinced that investors should sell Revlon's bonds after the company's recent earnings call, but an independent analyst argues that the bonds are undervalued. "The main thing I saw [after looking at the latest earnings report] is significant cash burn," says George Chalhoub, analyst at Deutsche Bank, and a first-teamer on the Institutional Investor 2001 All-America Fixed-Income Research Team. Though Chalhoub believes Revlon's new management team is capable, he doubts that Jack Stahl, the new ceo, has enough time and cash to turn the company around. He argues that without a cash infusion into the company, Revlon could run out of money as soon as the first quarter of next year. "These guys are producing products left and right but the top line is still anemic," he says.

Banc One Capital Markets is looking for a mortgage-backed securities strategist for its structured debt research team. Alex Roever, managing director and head of the Chicago-based research group overseeing asset-backed finance, MBS and collateralized debt obligations, says he is seeking a seasoned agency and MBS strategist, at the v.p. level. He declined to comment on why they are looking to hire at this point in time. The strategist would report to Roever. He says the position is a newly created one and is expecting to fill the new slot within a month or two.

Bear Stearns and Merrill Lynch have landed the lead roles on an $800 million bank debt financing backing Penn National Gaming's acquisition of Hollywood Casino. The choice of Merrill and Bear is seen as a major coup for the banks as they edged out Lehman Brothers, which acted as the adviser to Penn. "Merrill and Bear laid a better mousetrap than Lehman," one banker said, noting that the duo has prior investment banking relationships with Penn. Bankers at all three firms declined to comment.

Market players were disappointed by the low reported bid from Hutchison Whampoa and Singapore Technologies Telemedia and a competing offer from BANK ONE's private equity group for Global Crossing this week. "On Global, it's a lot of pain to take," said one dealer. The bank debt is unchanged in the 15-17 context, and traders noted that there have not been any trades since the news came out.

Marianna Wong has joined the institutional fixed-income sales desk at Comerica Bank as a v.p. in San Francisco. Wong, who moves over from Bear Stearns, will be a fixed-income generalist, selling an array of mostly taxable bonds. She reports to Jack Singer, senior managing director in charge of fixed-income sales in California. Wong says she was in Bear Stearns' Los Angeles fixed-income group. She says she made the move to "broaden" her experience. It could not be determined to whom she reported.

The credit card asset-backed securities sector is awaiting the final guidelines bank regulators will issue Friday on credit card lending. The regulatory changes, to be published by the Federal Financial Institutions Examinations Council, could bring five basis points worth of further spread widening to triple-A, fixed-rate sub-prime names, predicts Alessandro Pagani, ABS analyst at Banc One Capital Markets.

A $45 million auction of Crown Cork & Seal bank debt went off at about 88 last week after the company was said to have received an extension on a $144 million term loan set to mature on Aug. 4. An original lender was rumored to have sold the paper, taking the opportunity to reduce its exposure to the company's bank debt on the good news. One trader suggested that the buyer was looking to profit from a relative-value play. "You could sell the '02 bonds at 99 and buy the bank debt at 88," he added.

Deutsche Bank has hired John Santoro to be its "short-coupon" Treasury bond trader, trading primarily two-year notes. Santoro will replace Jeff Gray, who was released last week. He declined to comment when reached at his desk. Gray had already left the firm and was unavailable for comment late last week. Ted Meyer, a Deutsche Bank spokesman, says Santoro will report to fixed-income chief Thomas Paul. His first day was last Monday. His last job was at SG Cowen, where he ran the government bond desk from 1998 until the first week of April, when he resigned. Late last year, SG Cowen gave up its primary dealership.

Mark Jicka is reportedly leaving Deutsche Bank, where he was a managing director and head of North American corporate bond trading, in order to join Barclays Capital, according to several buy- and sell-side traders. Jicka could not be reached, nor could Rajeev Misra, London-based head of global credit trading at Deutsche Bank. Ted Meyer, Deutsche Bank spokesman, declined to comment. John Kreitler, global trading head at Barclays, did not return calls.

Gough Finance, a New Zealand finance company owned by the Gough, Gough & Hammer group , this week closed the first tranche of a NZ$260m ($117.9m) securitisation of heavy equipment leases. Arranged by National Australia Bank, the deal pools 1,400 operating and finance lease contracts totalling NZ$130m. The programme is expected to build to its full size over the next two years as further receivables are added to the pool.

Korea Exchange Bank Credit Service Co (KEBCS) this week launched its first cross-border securitisation of credit card receivables, a $500m issue led by sole bookrunner Credit Suisse First Boston. KEB Card International ABS 2002-1 offered a single tranche of triple-A rated notes wrapped by FSA, with an average life of 4.5 years and a legal maturity of February 2009.

Indonesia Fitch upgraded Indonesia's foreign currency long term rating from B- to B last Friday (August 2). The agency said that the increase was a result of an improvement in the fiscal sustainability and public debt management of the country, although both areas remained a cause for concern.