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J.&W. Seligman & Co. unloaded the last of its J.P. Morgan Chase holdings last Monday, selling $6.63 million of the 5.25% notes of '07 (A1/A+) at a spread of 164 basis points over Treasuries. The bonds had widened to 189 basis points over the curve by last Friday morning. "We're probably out for good," says Paul Pertusi, portfolio manager of $1.75 billion in taxable fixed-income at the New York-based asset manager. He cites concerns about the bank's overall strategy and execution.

OppenheimerFunds subsidiary HarbourView Asset Management and Merrill Lynch Investment Management are shopping for assets for two new collateralized loan obligations, as both firms try and chalk up their second deal in a year. Both firms are tapping the market at an opportune moment, one portfolio manager stated, explaining that spreads on notes being issued to fund the transactions are rising but the underlying asset spreads also are widening considerably. The Merrill Lynch deal is a $328 million cash-flow arbitrage transaction called LongHorn CDO III, said a banker. Merrill closed on LongHorn CDO II, a $350 million vehicle, in February. The approximately $300 million HarborView vehicle, underwritten by Salomon Smith Barney, will be the firm's fifth CDO and it follows hot on the heels of HarbourView CLO IV, a $350 million vehicle that closed in January.

Moody's Investors Service has hired Michael Gerdes, an investment manager in the asset-backed securities group at MetLife as a senior commercial mortgage-backed securities analyst in New York, says Tad Philipp, managing director and head of the CMBS group. Gerdes could not be reached for comment.

Nextel Communications' bank debt slipped last week after a negative equity report from J.P. Morgan claimed that the company did not correctly account for its bad debt expense and its customer churn rate. The market for the bank debt fell from the 86 level to the 84 1/2 - 85 1/2 range. In response to the report, the company issued a statement assuring investors of the integrity of its financial results and claimed that the report employed an "over-simplified model and erroneous assumptions."

AT&T Corp.'s new 364-day revolver has seen a lot of action after breaking into the secondary market last week. Traders said the paper initially was moving in the 93 1/2 - 94 1/2 context, but they noted that it had firmed up to the 94 7/8 - 95 7/8 range later in the week. Although the $4 billion revolver has a short term, traders said the price is depressed because market players are hesitant to buy into the paper after being badly burned by other telecom names.

The Clinton Group, a New York-based hedge fund, has hired Robert Smalley, a banking analyst and head of corporate bond research at HSBC Securities, according to an official at HSBC. Smalley could not be reached. Thomas Schnepp, head of global fixed-income arbitrage at the Clinton Group, referred calls to Patrick O' Meara, a firm spokesman, who did not return calls.

PNC Bank and Citibank are readying a $525 million refinancing forMassey Energy. The Richmond, Va., coal producer had been discussing a new credit facility with potential lenders, aiming to close a deal before the $150 million revolving portion of its existing $400 million facility expires next month, said Phil Nichols, assistant treasurer. The expiring 364-day piece, however, has a one-year term-out option if the company is unable to refinance successfully. A bank meeting date could not be ascertained, and officials at PNC and Citibank did not return calls by press time.

The sub-underwriting phase for QwestDex, the directories business of Qwest Communications International, picked up commitments last week, as ING Capital, Bear Stearns, Royal Bank of Scotland, Scotia Capital, Credit Lyonnais and Commerzbank took senior managing agents roles. General Electric Capital Corp. also is said to have received approval for the managing agent tier, but the firm has not yet signed on, said one of the bankers involved in the syndication process.

Jaap Rademaker, v.p. in the structured transactions group at JPMorgan in London, has left the firm. Rademaker reported to Bertrand Des Pallieres, head of rates marketing and structuring at JPMorgan in London. Rademaker joined the firm a year ago in August (DW, 8/15) from Deutsche Bank in London, where he had a similar position. It could not be determined whether Rademaker had gone to a competitor. Des Pallieres referred calls to Eileen Darko, spokeswoman in London, who had no comment. Rademaker could not be reached.

RAMS Home Loans Pty Ltd this week priced its latest securitisation of Australian mortgages via lead manager Citigroup/SSB. RMS Trust 2002-1 offered investors A$1.2bn of notes. "The deal was oversubscribed," said a syndicate official at Citigroup/SSB. "The senior notes were well distributed among local fund managers, banks and a few conduits."

After a delay of three working days, Southern Cross Airports Corp managed to complete its A$1.5bn multi-tranche issue this week. But to get it away, the consortium was forced to drop a seven year tranche and provide spreads at the wide end of the pricing ranges. The issue's success is a welcome relief to the consortium, which has to refinance a bridge loan that was used to help purchase Sydney Airport in June.

Confusion reigned in Thailand when newly appointed transport minister Suriya Jungrungreangkit indicated that the Airports of Thailand privatisation might be postponed, and TOT Corp released a wide pre-filing price range for an IPO that will most probably not take place until 2003. As Merrill Lynch and its Thai operation, Merrill Lynch Phatra, prepare the renamed Airports of Thailand for listing, Jungrungreangkit told the local press that valuations may not be attractive enough to proceed with the float. A decision on the sale of 30% of the company, which could raise over $300m, will be made later this month