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BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

Jay Durkin has left Lehman Brothers, where he was a managing director in high-yield sales based in New York. High-yield buy-siders say Durkin simply wanted to take some time off after a number of years in the business. He had spent eight years at Lehman, prior to which time he sold high-yield bonds at Kidder, Peabody & Co. Durkin declined comment when reached at his residence. A call to Tom Humphrey, global head of credit sales at Lehman, was not returned.

Williams Companies is a Tulsa, Okla.-based energy concern. A long-time investment-grade company, Williams was downgraded to junk last July. It had $13.9 billion in total debt at the end of 2002. The company priced its first high-yield deal on March 4, a $175 million 144a transaction through its subsidiary Northwest Pipeline Corp.

Larry McCarthy will join Lehman Brothers today as managing director and head of distressed trading. He reports to Alex Kirk, head of high yield, according to a Lehman high-yield official with knowledge of the situation. McCarthy had been trying to negotiate the move for over a month (BW, 2/3). Neither he nor Kirk returned calls. It could not be determined who, if anyone, McCarthy is replacing.

Morgan Stanley has made two senior hires as part of an effort to grow its high-yield business in response to the recent growth of that market, says Mitch Petrick, co-head of the firm's global high-yield and loan products group.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

Oh Loan-eo, Loan-eo, Wherefore art though Loan-eo ... A Banc of America Securities loan analyst got a little carried away with Shakespearean references, with this phrase just one of many puns which included--Much Ado About Nothing, As You Like It, CP or Not CP and Measure By Measure--in a recent report on the market. According to sources, almost the whole of the loan group did not want this theme, but after a fight, Loan-eo was authorized. The only surprise from all this thespian fare is why the most pertinent quote was left out. "Neither a borrower nor a lender be."

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.

Sankaty Advisors, the fixed income outfit affiliated with Bain Capital, has tapped Deutsche Bank to be the underwriter for its latest collateralized loan obligation, Race Point II. The high-yield loan CLO is said to be in the region of $400 million, according to sources. Sankaty already has over $6 billion in assets under management and completed a $500 million CLO called Castle Hill Ingots last year (LMW, 9/15). Managing directors Jonathan Lavine, Diane Exter, who focuses on loans, and Kristin Mugford lead the portfolio management team. A Standard & Poor's report on the firm produced in conjunction with the rating of Race Point CLO states the team's track record compares favorably with its peers of the same vintage, with Sankaty generally holding a lower percentage of "CCC" rated securities and defaulted securities. Calls to Lavine were referred to a spokeswoman who could not provide comment by press time.

Structured finance analysts are highlighting the increasing number of collateralized debt obligations that include a first loss AAA tranche that is subordinated to the senior most AAA tranche. The most recent example is Merrill Lynch Investment Management's Longhorn CDO III, a $300 million collateralized loan obligation that priced earlier this month. The two senior-most AAA tranches priced at LIBOR plus 55 and LIBOR plus 111 basis points, respectively. Joe Matteo, a portfolio manager with Merrill, could not be reached by press time.