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  • When do you expect the Federal Reserve to raise rates and why? We do not expect any Fed tightening until the middle of 2005. We think Fed officials will be patient, because it will take a long time for the economy to use up its excess slack. And, that is necessary to push inflation higher. The Fed is in a reactive rather than preemptive mode because inflation is below the level that is desired.
  • Boyd Gaming Corp. has yet to decide the lead banks and structure on the financing backing its $1.3 billion merger with Coast Casinos.
  • Collateralized loan obligation managers are starting to use synthetic exposures to indices as a means of generating yield as tight spreads and an active loan community pose challenges to sourcing loans for new deals.
  • Iron Mountain has a $400 million revolver expiring next January and will be proactive about refinancing the credit, which also includes a $250 million "B" term loan that expires in 2008.
  • J.P. Morgan landed General Re-New England Asset Management's $335 million portfolio and then flipped the entire exposure to Eaton Vance Management.
  • Paper under the Adelphia Communications Corp. umbrella has been trading as banks and bargain hunters choose to cash out as the price for the paper inches toward par.
  • There was a flux in the attendance of distressed buysiders at the Loan Syndications and Trading Association's (LSTA) question and answer session for its newly revised trade confirmation forms last week.
  • Four Corners Capital Management has been tapped to be the sub-advisor for the Security Income Opportunity Fund, a mutual fund that will launch at the end of March.
  • More juice was added to the second lien of Microcell Telecommunications' bank facility last week, while the first lien oversubscribed.
  • New York Life Investment Management has filed with the Securities and Exchange Commission to launch the Mainstay Floating Rate Fund, while Nuveen Investments also has in the works a public offering of a closed-end exchange-traded fund investing in loans.
  • Hedge funds are starting to forgo managing collateralized debt obligations of structured finance securities, according to market officials.
  • The entire fixed-income market rallied on the back of Federal Reserve Chairman Alan Greenspan's comments before Congress on Wednesday when he said inflation remains low and the Fed has no plans to raise interest rates anytime soon.