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Groupama Asset Management is looking to increase its corporate allocation, and is warily eyeing financial credits. Dan Portanova, portfolio manager of $150 million, believes the economy will recover eventually, but says it is still vulnerable to exogenous shocks. As a result, he wants to see another month of data to be sure that unemployment is truly falling, before becoming more aggressive. Assuming that the futures market was correct last Monday in betting on a year-end Fed funds rate of 2.25-2.50%, Portanova will have upped Groupama's corporate exposure by 10% by that time. Groupama will sell U.S. government securities to raise the necessary funds. Names Groupama will look to add include Wells Fargo, whose 6.125% notes of '12 (Aa2/A+) were trading at 89 basis points over Treasuries last Monday. Portanova says he will probably look to add either the five- or 10-year maturity sectors, and was considering buying the bonds last Monday. Portanova likes Wells Fargo in part because its mortgage business is still strong due to a resilient consumer and housing market.

Loan market trivia: Which loan market trader recently won a Tony Award for Best Musical for his role as one the producers of Thoroughly Modern Millie? Answers can be emailed to msell@iinews.com and winners will receive a hearty congratulation for their market acumen.

George Schupp, portfolio manager withU.S. Bank Asset Management, formerly known asMississippi Valley Advisors, says he will rotate 5% of the firm's $2 billion portfolio, or $100 million, from Treasuries into corporates when single-A rated corporate bonds widen by 50 basis points. Single-A bonds were trading at an average of 150 basis points off the curve last Tuesday. He says he is uncertain as to when the spread widening may happen. He argues that high-quality corporate bond spreads are tight due to a particularly difficult corporate environment given the widespread regulatory and ratings problems within the sector.

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.

The recently syndicated deals for Metro-Goldwyn-Mayer Studios and TriMas have broken in the last two weeks, and the paper has been scooped up by hungry investors. Both names have been trading in 101 territory, according to dealers. MGM, which broke this week, was reported to have traded more than 10 times by Tuesday afternoon. Market players explained that prices for decent credits have been driven up as paper starved investors look to fill their baskets.

RBC Capital Markets is working toward closing its debut $400 million collateralized loan obligation early next month and has hired Nicholas Daifotis as managing director and head of high-yield origination and capital markets as part of the group's ongoing build-up of its acquisition financing for the middle market. "Hiring Nicholas Daifotis [from Barclays Capital] is a prelude to hiring more on the high-yield origination side of the business," said Ken Kencel, co-head of RBC Leveraged Capital. RBC Capital also is talking to some senior-level people about running the loan syndication side of the business, he added.

The $1.05 billion in new bank debt for Six Flags Theme Parks is well covered in the event of a default scenario, but the holders of $1.7 billion of unsecured debt could be in for a hairier ride. The bank debt is rated Ba2 and debt-to-EBITDA is inside 2.5 times, but total leverage is around six times and so the unsecured is B2, explained Moody's Investors Service senior analyst Glenn Eckert. One concern cited by Eckert, though, is if Six Flags ran into operational issues and had to be an asset seller. As the premier buyer and consolidator, financial sponsors would be a possibility, but Six Flags usually buys competitors, he explained.

SLI, a lighting company dealing in lamps and fixtures, was bumping up against the end of waiver period and looking for a long-term amendment as LMW went to press Friday. The name has drawn attention in the secondary market over the past two weeks, with big pieces reported to have traded in the 40s. Last week a $15 million piece was believed to have traded out of a Japanese Bank in the 45-46 range. Traders said that a $20 million piece traded in the 46-47 range two weeks ago.

Titan is making the distinction between its credit bank and its investment bank by choosing Wachovia Securities to lead its new $485 million credit rather than incumbent Credit Suisse First Boston, according to Mark Sopp, senior v.p. and cfo. The company wanted to make a clear distinction between its credit bank and its investment bank to avoid a potential or perceived conflict of interest and was seeking assured objectivity from its banks in relation to future financing needs, explained Sopp. CSFB will remain in Titan's relationship bank group, but will be involved primarily with the company's investment banking business.

Credit Suisse First Boston and National City Bank last Friday launched syndication of a refinancing for OM Group. The move is described by bankers as "an opportunistic refinancing, to take advantage for current investor appetite." The BB/Ba3 $600 million "C" tranche is priced at LIBOR plus 2 1/2%, down from the current LIBOR plus 3% spread. The debt was originally incurred to finance the acquisition of German chemical company Degussa last year. The new tranche has a five-year tenor. OM Group is an international producer and marketer of value-added, metal-based specialty chemicals and related materials.

Trinity Industries, a Dallas-based railcar company, tapped the "B" loan market for the first time as part of a $400 million refinancing led by J.P. Morgan. The new loan replaces a $450 million, 364-day revolver, also led by J.P. Morgan, set to mature this month. "The aim is to diversify the bank group and get a longer-term commitment," noted Neil Shoop, treasurer of Trinity.