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Conseco's bank debt traded up to the 101102 context last week, beginning with a flurry of paper changing hands in the 99 range. Dealers noted that the accrued interest on the bank debt as well as positive speculation of the value of the preferred equity, which lenders will receive as a part of their recovery package, caused the bank debt to climb over par. Investors have been aware of both factors for some time, but the name ticked up this week as the company draws closer to emerging from bankruptcy, a trader explained. One of the biggest issues in Conseco's bankruptcy case is the appropriate valuation assigned to the company. Under Conseco's fourth amended plan of reorganization, the Carmel, Ind.-based company contemplates a $3.8 billion valuation, explained a Conseco spokesman. The holders of Conseco's trust originated preferred securities allege that the company is worth more. Hearings on the matter have wrapped up and the parties were slated to file post-trial briefs last Friday. The spokesman said he expects the bankruptcy court judge to rule on the company's confirmation shortly after reviewing the briefs. Daniel Murphy, senior v.p. and treasurer of Conseco, could not be reached for comment.

Harold Siegel has joined Highland Capital Management as a managing director, where he will team up with the firm's other new recruit Jack Yang, who joined two weeks ago. Siegel worked with Yang at Merrill Lynch and prior to that they both worked for Chemical Banking Corp. Siegel said his new role at Highland will be in a fundraising capacity. He will focus on growing the firm's asset management business and its institutional capital raising initiatives, according to a statement from Highland.

Karen Halliday, formerly of Deutsche Bank, was scheduled to start work at GE Capital today as a senior v.p. in capital markets services, making her the most recent Deutsche Bank staffer to switch alliances. She will be supporting the global sponsored finance business with William Allen, also a senior v.p. Halliday is reporting to Mary Beth Burnett, managing director, said a GE spokesman. Halliday, who left Deutsche Bank in July 2002, could not be reached. Kevin Burke, a managing director in GE's Capital Markets Group, also an ex-Deutsche Bank banker, joined the firm in April (LMW, 4/14).

Goldman Sachs has issued the red herrings to potential investors in The Carlyle Group's latest loan fund--a $300 million vehicle named Carlyle Loan Opportunity Fund I--that will purchase par, stressed and distressed loan assets, said a banker. The focus is on the non-investment grade bank loan market and is designed for Carlyle to buy loans in the 85-95 range (LMW, 6/9). The red herrings are the first draft of the offering circular and to price talk on the deal will follow shortly, he added. Officials at Carlyle did not return calls and a Goldman banker declined comment.

Pieces of Goodyear Tire & Rubber Company's pro rata pieces changed hands last week. The company's Euro denominated pro-rata tranche traded in the 9495 context and the U.S. pro rata piece was said to have traded in the 92931/2 range. Traders could not pinpoint what had spurred the recent movement in the relatively illiquid paper, but noted that there was increased buyer interest in Goodyear. The tire maker is scheduled to release its second quarter financial results this Wednesday. Calls to a company spokesman were not returned by press time.

Susan Estes, managing director and head of fixed income for North America at Deutsche Bank in New York, has resigned. Estes' decision was predicated on a "desire for a significant lifestyle upgrade," according to an internal memo sent to global markets staffers on July 25 by Charles von Arentschildt, head of global markets America, and Michele Faissola, global head of rates. Estes, reached at work, referred calls to Harriet Benson, spokeswoman, who declined comment. Faissola was traveling and could not be reached. Calls to von Arentschildt were not immediately returned.

Hon Hai Precision Industry, the Taiwanese manufacturer of IT and communications components, launched its first convertible bond since November 2000 this week, raising $400m before exercising a $50m greenshoe.

AUSTRALIA

Hong Kong's Mass Transit Railway Corp (MTRC) made a surprise return to the dollar bond market on Wednesday with a $100m 10 year Eurobond led by BNP Paribas.

Philippine Long Distance Telephone Co (PLDT) is considering holding a cash tender for some of its outstanding bonds, which will be paid for by a new bond issue.

ING Bank Australia, Morgan Stanley and GE Capital Australia capitalised on a vibrant Australian bond market this week to launch new issues.

Alexander Caviezel is to move from his London-based position in JP Morgan's treasury services group in September and relocate to Hong Kong as the bank's regional executive in charge of treasury services, Asia Pacific.