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* "It's certainly the 'in' thing to do."--Thomas Donnelly, senior v.p. at GE Capital, on having an active loan sale program.

Campbell Newman Asset Management is seeking to sell two- to three-year Treasuries in its intermediate and broad market portfolios in order to buy five- or six-year Treasuries. Jeff Bryden, a portfolio manager overseeing $325 million in taxable fixed-income, says the firm wants to take advantage of the steep slope in the short part of the curve. On June 21, two-year Treasuries yielded 2.86%, versus 4.04% for five-year Treasuries, and 4.77% for 10-year Treasuries. Bryden says the trade could represent up to 5% of the assets in the intermediate and broad market portfolios he oversees. He would not be specific about a trigger for the trade, saying only that it is something he is actively considering, depending on his perception of the economy and the holdings in individual portfolios.

Pacific Investment Management Company, the 800-pound gorilla of the institutional money management industry with assets in excess of USD253.7 billion, plans to issue its first synthetic managed collateralized debt obligation. The CDO, named Channel, will be referenced to a USD1 billion portfolio of credit-default swaps and cash instruments, according to a market official familiar with the transaction. Officials at PIMCO and Goldman declined comment.

Adelphia Communications filed for bankruptcy last week but, because investors had anticipated a Chapter 11 filing, levels for its different bank facilities did not fluctuate drastically. Traders said the name was relatively quiet, although some of its Century Cable paper moved in retail. That paper was believed to have traded in small pieces in the 75-80 range, wider than the 79-80 range quoted the previous week.

Alliance Imaging took advantage of current investor appetite for the company's paper to revisit the bank market and gain cheaper pricing on its term loans. According toHoward Aihara, corporate controller, the Anaheim, Calif., provider of outsourced diagnostic imaging services took its cue from the performance of its public bonds, which were trading at 106-107. "The debt markets looked receptive," Aihara said, adding that the company decided to proceed with the refinancing following discussions with its Deutsche Bank-led bank group.

Ameristar Casino has amended its credit facility to secure lower borrowing costs. The Las Vegas-based gaming company was looking to bring its interest costs in line with the market and a peer group with comparable credit numbers, according to Thomas Steinbauer, cfo. The company was able to obtain the better pricing because of an improved credit profile, he said, noting that Ameristar's debt-to-EBITDA multiple has decreased from 5.15 times to 4.15 times and its senior debt-to-EBIDTA ratio has decreased from 3 times to 2 times. The company was able to lower its leverage ratios through a combination of increased operating cash flow and debt reduction using $95 million of the proceeds from a November 2001 equity offering.

Distressed traderDennis Lafferty is the latest player to leave Goldman Sachs' loan desk. Market sources said Lafferty joined Deutsche Bank last week as a v.p. responsible for trading distressed bonds. He will report to John Shippee, managing director for distressed products. Ted Meyer, Deutsche spokesman, confirmed Lafferty's arrival. "We have been expanding distressed products over the past three years," he said, noting that the group now has 65 traders worldwide.

Deutsche Bank, Bear Stearns and Bank of America will launch a $1 billion credit backing Wynn Resorts' $2.4 billion development of Le Reve this month. A $750 million revolver will be accompanied by a $250 million delayed-draw term loan, both of which will carry a spread of 4% over LIBOR. Deutsche officials declined to comment, while officials at Bear Stearns and BofA did not return calls by press time.

Bear Stearns Asset Management is in the final stages of ramping up a $402 million collateralized loan obligation called Gallatin Funding 1. According to officials familiar with the vehicle, the collateral is at least 90% ramped-up. Calls to Bear Stearns were referred to a spokeswoman, who did not return calls.

Bank of America and UBS Warburg's credit for Columbia House moved upwards to par last week after approximately 20 institutions came on board to fill the deal. The $145 million "B" loan was offered at 98 1/2 in an effort to allay concerns over the storied nature of the B2 credit. "The CLOs love discounted paper as it offsets losses elsewhere," one banker said. In addition to the discount, two years of call protection at 102/101 was thrown in as a sweetener, and the amortization schedule was revamped. The spread, however, remained at 4 1/2 % over LIBOR. Officials at B of A and UBS declined to comment.

Credit Suisse First Boston will lead a $400 million debt financing package to back Francisco Partners' acquisition of GE Global eXchange Services (GXS), a business-to-business e-commerce company. A banker said the $800 million acquisition would be funded in part with bank debt and bonds, although the exact mix of each has yet to be decided. The remaining $400 million will be funded with equity provided by Francisco, one of the world's largest technology buyout funds.

Deutsche Bank has hired Gavin Colquhoun fromMerrill Lynch to trade crossover credits. At Merrill, Colquhoun's duties will be assumed by Pat Collins, who will trade distressed names, and Billy McManus, who just relocated from New York, will trade the dollar crossover book and names with euro components, according to a high level Merrill official. Merrill is now in the market to hire a new high-yield trader, adds the official. It could not be learned to whom Colquhoun will report. Calls to a Deutsche Bank spokeswoman were not returned by press time.