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Small pieces of Adelphia Communications' Century Cable bank debt traded on the Street last week, starting the day at 88 and then falling to the 84 3/4 range after Moody's Investors Service downgraded Adelphia and its operating companies. The ratings agency said the downgrades reflect the recovery values in the face of an "imminent bankruptcy." One dealer said that, while market players expect a bankruptcy filing, the downgrades caused vehicles to sell, putting downward pressure on the price.

Apria Healthcare is reportedly looking for a 100 basis points cut on it's $175 million "B" loan after a government investigation into the company's Medicare billing practice led nowhere. "The hot market and shortage of paper also is allowing issuers to return to the market and get cheaper deals," said a banker. Bank of America is leading the BBB-/Ba1 deal and is looking to take pricing from LIBOR plus 3% through a 100% amendment. One banker familiar with the deal said, "The government cost the company a lot of money unnecessarily."

A sell-side and buy-side analyst say it is time to begin reducing exposure to high-grade retailers, given the recent strong performance of the sector and the widespread belief that the economy is improving. However, they have differing views about which high-grade retailers should be taken off the table. A large East Coast buy-side firm has begun reducing exposure to high-grade retailers such as Albertson's Inc., Kroger Co. and Safeway Inc., primarily on the view that the names are too tight relative to the rest of the high-grade market. An analyst at the firm has expressed concern that these supermarket chains may take on more leverage a year or two down the road as they become increasingly acquisitive in order to stave off increasing competition from Wal-Mart Stores. Last Monday, the Safeway 6.5% notes of '11 (Baa2/BBB) were 100 basis points over Treasuries, the Kroger 6.8% notes of '11 (Baa3/BBB-) were 120 off the curve and the Albertson's 7.5% notes of '11 (Baa1/BBB+) were 105 off.

One analyst says investors should buy Tyco International, another says they should not. The divergent opinions follow L. Dennis Kozlowski's resignation last week as ceo of the conglomerate, and his indicted for tax evasion. Last Tuesday morning, when an indictment appeared probable, Tyco's 6.75% notes of '11 (Baa2/BBB) were trading at a bid of 82, six points below where they had traded the previous week.

Aashish Ponda, head of credit derivatives for Asia ex-Japan at ABN AMRO in Singapore, has resigned, according to officials at the firm. "He focused the team on structured transactions," noted one credit derivatives trader at a rival firm, noting that ABN put its emphasis on structured credit transactions rather than market making in default swaps.

The International Swaps and Derivatives Association is in the early stages of forming a steering committee for the development of a standard weather derivatives confirmation, according to Ross McIntyre, director, weather risk at Deutsche Bank in London. He added that Deutsche Bank wants to be actively involved in the process because the market needs to have one standard to make it more efficient.

Goldman Sachs last week completed a $450m convertible for China Development Financial Holding (CDFH), the Taiwanese financial holding company. Deal officials responded to criticism of an earlier deal the bank had arranged for Cathay Financial by offering more conservative terms and the inclusion of a syndicate. But the CDFH deal only just squeezed home.

Hong Kong Rick Stoddard, head of the Asian issuer client group at Merrill Lynch in Hong Kong, is leaving in early July to return to New York. He will take up a role as a managing director in Merrill Lynch's leverage finance group in the US - the same area he worked in before arriving in Hong Kong four years ago. Antony Hung, who is presently head of the investor client group, has been promoted to manage both issue and investor groups.

Daiwa SMBC and UBS Warburg last Friday (May 31) priced the float of a new property trust on behalf of leasing company Orix Corp at the top end of the range, but sold fewer shares than had been expected. Meanwhile, Merrill Lynch and Mizuho yesterday (Thursday) priced the IPO of Japan Prime Realty Investment Corp at the expected ¥200,000 per share, selling the full 182,000 share allocation on offer.

India ABN Amro and JP Morgan are arranging the sale for the Indian government of a 59% stake in National Aluminium Company (Nalco), the world's lowest cost producer of alumina. Nalco will become the third privatised Indian company to list on the New York Stock Exchange.