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Pat Moon, portfolio manager with Meridian Management, is rotating 10% of the firm's portfolio, or $12 million, from Treasuries into corporate bonds on the view that corporate spreads are back to their pre-November spread levels. Moon reasons that even if corporate spreads remain fairly wide, due to accounting fears, the pick-up in income on the coupon is significant enough to warrant the move. But, with recent positive economic news and inventories at their lowest levels since the early eighties, Moon anticipates corporate spreads will tighten and Treasuries will drop in price.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market last week. It also tracks facility amounts, ratings, pricing and maturities.

Missouri Valley Partners will extend its duration to neutral against its index if the recovery shows further signs of faltering. Steven Jones, portfolio manager of $175 million, says that if the S&P 500 index falls below 1000, he would consider bringing duration to a neutral position versus its benchmark, the Lehman Brothers aggregate index. Last Tuesday, the S&P 500 was at 1083. At 4.26 years as of last Tuesday, Missouri Valley Partners was 5% short the 4.49-years of its bogey. Other indications Jones would consider before adding duration are continued weakness in the economies of Europe and Japan, and flat consumer spending after inventories are replaced. In making these determinations, he will rely largely on the view of Ed Hyman, economist at ISI Group. To add duration, Missouri Valley would buy 10- to 30-year Treasuries and sell Treasury bonds of shorter duration.

The Commonwealth of Massachusetts Pension Reserves Investment Management Board is seeking a $600 million credit facility to fund its $1.6 billion real estate portfolio. "We are looking for a $600 million unsecured facility that we will draw down over the next 12 to 18 months," said George Wilson, senior investment officer at the fund, regarding its plans. Wilson explained that the pension fund is looking to lever up its purchasing plans in the real estate market while it can benefit from low borrowing costs. The board has been in discussions with different lenders, declining to name specific candidates.

Tom Currie has left his post as director of new assets with Standard & Poor's to join XL Financial Assurance, the Bermuda-based financial guarantor, as chief underwriting officer. The position had been open since last year, when Jim McNichols was promoted to chief financial officer. XL Financial Assurance is a re-insurer and an affiliated company of XL Capital Assurance, a triple-A rated monoline financial guarantor. Both companies are subsidiaries of XL Capital Ltd. based in Bermuda. Currie did not return calls. Roger Scotton, director of communications with XL Financial Assurance, says Currie reports directly to McNichols and that his new function consists of overseeing the underwriting process of financial guaranteed asset-backed securities. Currie joined earlier this month.

Wachovia Securities last Friday launched syndication of the $180 million credit for Right Management Consultants, backing the company's acquisition of U.K.-based Coutts Consulting Group and refinancing existing debt. RMC specializes in career transition and organizational consulting and is buying CCG for approximately $108 million. The bank debt is split between a $90 million revolver and $90 million term loan "A" and is priced at LIBOR plus 21/ 4%. Fleet Bank, UBS Warburg and SunTrust Bank have signed on already said one banker. Lee Bohs, executive v.p., corporate development, did not return calls. A Wachovia spokeswoman declined comment.

TrizecHahn USA tapped its relationship banks for a best-efforts deal to secure a $350 million, three-year revolver instead of seeking a fully underwritten facility. The company saves by not paying a bank to underwrite the deal, said Jeffrey Echt, senior v.p. of finance and treasurer of TrizecHahn Office Properties, a subsidiary of the parent. He declined to comment on the amount saved.

Deutsche Bank's $350 million loan backing the exit financing for AMF Bowling Worldwide, launched into the market two weeks ago, has been given a B1 rating by Moody's Investors Service, reflecting the significant reduction in leverage afforded by its reorganization plan. Approximately $1.2 billion of debt is being replaced with $450 million of funded debt, including $300 million of the bank debt and $150 million of notes due 2008 [assigned a B3 rating]. "Essentially hundreds of millions of debt has been forgiven," said Russell Gorman, v.p. senior analyst at Moody's.

Charter Communications traded up last week from 95 to the 96-97 range with traders citing $5-10 million trading. A $2.5 million piece changed hands at 97 1/16, said one trader. Dealers began to see prices rising for the name following a U.S. Appeals Court ruling last Tuesday ordering the Federal Communications Commission to reconsider regulations that forbid a corporation from owning both broadcast stations and cable systems in the same market. Charter had been trading off over the past couple of weeks for a combination of reasons, including negative market sentiment and disappointing forth quarter earnings. Charter's debt traded at a high of 99 in mid-January on news that the company would issue bonds to pay down its bank debt (LMW, 1/14). Calls to Kent Kalkwarf, company cfo, were referred to a spokesperson, who did not return calls by press time.

Credit Suisse First Boston has rejiggered the duties of some of its investment-grade fixed-income analysts. Thierry Perrein, director and real estate investment trusts analyst, has taken over insurance industry coverage from Kevin Morley, managing director and manufacturing analyst. Morley will now focus exclusively on manufacturing, as spread widening in the sector means that it requires more attention, according to Tony Smith, managing director and head of U.S. corporate bond research at CSFB. Perrein will continue to cover REITs.

Louise Purtle resigned last Tuesday from her job as a director and U.S. corporate credit strategist at Deutsche Bank, and will join Creditsights, an independent fixed-income research shop, on March 11. She will report to Glenn Reynolds, ceo, and Peter Petas, head of global strategy. "This adds a seasoned credit pro in corporate strategy who has strong relationships [with potential clients] in Europe, Asia, Australia and of course the U.S.," says Petas. Purtle will focus on corporate bond strategy, while Petas concentrates on convertible bonds and emerging markets research.