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Credit Lyonnais is establishing a multi billion-dollar fund that will invest in the high-yield, investment-grade and credit-derivatives markets in the U.S. and Europe. As reported last week on www.bondweek.com, the bank, which does not currently have a significant presence in those areas in the U.S., has hired three investment-grade traders from Deutsche Bank and a senior credit derivatives salesman from Merrill Lynch to manage the fund, according to fixed-income officials with knowledge of the group's plans. The fund, which will launch in May, will start with at least $5 billion dollars to build a global investment platform across all credit products, and will include trading desks in New York and London. The group will report to Omar Abukhadra, global head of credit markets and credit derivatives. He could not be reached. Once the group is in place, it is expected that additional senior hires, including analysts, will be made.

Brian Reid, managing director at Deutsche Bank and global head of money markets and repos, has been promoted to head the firm's institutional client group for the Americas. Ted Meyer, a firm spokesman, says Deutsche Bank's heads of sales for derivatives, foreign exchange and global markets products will all report to Reid. Reid, who will move to New York from London, is a member of the bank's executive committee, global markets division. He replaces Jim Coley, who left the bank earlier this year.

Ed Oppedisano has left Deutsche Bank, where he was a director and investment-grade analyst covering technology, media and telecom. As first reported last week on www.bondweek.com, he will join UBS Principal Finance, a New York-based buy-side fund at UBS Warburg. Oppedisano says he had an opportunity to stay at Deutsche Bank, but took the new position because considers it "the best job on Wall Street." He starts today and reports to Peter Abramenko, managing director. He did not return calls. Ted Meyer, a Deutsche Bank spokesman, would not comment on Oppedisano's reason for leaving, citing firm policy.

Karsten Kibbe has been named managing director and new head of commercial mortgage-backed securities at Société Générale after Tom McDevitt resigned to create his own loan fund, says Greg Medcraft, managing director and global head of securitization. Prior to filling McDevitt's vacant position, Kibbe was director and deputy head of CMBS. Kibbe says he is looking to hire a banker to fill his own former slot.

Stanfield Capital Partners is looking to expand its distressed debt business as the firm believes good opportunities in distressed land will continue to surface in the market. Stanfield is planning to continue to expand its distressed fund through money raising activity this year and next.

In another positive sign for the loan market, UBS Warburg will be leading a debt financing package for the private equity firms Whitney & Co. and Golden Gate Capital backing the $685 million acquisition of Herbalife. The company is a weight management and nutritional supplement provider. Some market observers believe sponsor activity is picking up as financing is becoming more readily available and private equity firms need to put to work their nascent piles of cash. Details of the debt financing are still being determined, another banker noted. UBS bankers declined comment on the transaction.

Wachovia Corp. has transferred $16 billion in fixed-income assets from Wachovia Asset Management (WAM) to Evergreen Investment Management (EIM), letting go two members of its seven-person taxable fixed-income team. Three others chose to leave. The asset shift is part of an effort to pool the assets of WAM following its recent purchase by First Union, says Chad Peterson, spokesman for EIM. The assets include taxable and non-taxable mutual funds and individually managed accounts.

The market is clearly suffering from indigestion as it continues to absorb debt on pace to rival last year's record issuance. About $13.4 billion of investment grade debt hit the market in the week ended April 11, bringing the total issuance for the year to $188.7 billion or on-pace for another record year. The oil & gas and utility sectors were very active, with new deals priced for Apache ($400 million 10-years), Duquesne Light ($200 million 10-years), Kerr-McGee ($350 million 3-years), Valero ($750 million each of 10s and 30s and $300 million 5s) and Progress energy ($350 million 5s and $450 million 10s). Meanwhile, the disarray in the telecom sector is affecting even the better names in the sector. AT&T Wireless was forced to increase spreads 30-35 bp over to +300 bp for its $3 billion deal. It remains very much a split market, with untainted BBBs seeing strong demand on the back of economic recovery hopes and any credit with a hint of SEC or accounting troubles going begging.

Dealers said that roughly $25 million of Wyndham International's bank debt has been trading in the 95-96 range up from the 93 3/4 and 94 1/2 range a couple of weeks ago on the back of Starwood Hotels & Resorts Worldwide's proposed $1 billion bond deal. Market players explained that the name reacted positively to an indication for growing health in the lodging sector.

Greg Hanley, managing director and head of distressed trading at Bear Stearns, has added high-yield trading to his responsibilities, according to Russell Sherman, a firm spokesman. Hanley fills a void left by Harry Rosenberg, who had overseen all credit trading and research, from high grade to high yield, before he left the firm last month (BW, 3/13). Rosenberg's high-grade responsibilities were taken over last month by Kelley Millet (BW, 3/17).

Federal-Mogul has fluctuated this week with roughly $15 - 20 million trading following news that Carl Icahn and other bondholders have struck a deal with asbestos claimants. Dealers said the name traded as high as 66 following the news on Tuesday, but that by noon Wednesday it had traded in the 62-63 range.

John Deuschle has left HSBC Securities in New York where he was head of corporate bond sales. He will join Stephens Inc., a Little Rock, Ark.-based investment bank. Deuschle says his wife is originally from Little Rock, and he wanted to return there to raise his family. His eventual duties at Stephens have not yet been determined. Deuschle will not be replaced at HSBC, says an HSBC official. Pat McDonald, HSBC head of U.S. fixed-income sales, declined comment.