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Roughly $15 million of Exide Technologies' bank debt traded up to the 69-70 level from 62-64 last Tuesday following the company's bankruptcy filing. The real driving force behind the trades was the timing of the filing and not the actual filing itself, which had been expected for months. Dealers explained that bank lenders would be entitled to collateral in certain foreign and U.S. subsidiaries if the company filed after April 12. The company's move to bankruptcy last Monday ensures banks will get that collateral, making the debt more attractive.

Franklin Templeton has made some personnel changes to respond to growth in its loan portfolio management area. Chauncey Lufkin, previously senior portfolio manager has been promoted to chief investment officer of Franklin's debt group and Richard D'Addario, previously senior v.p. and portfolio manager has taken Lufkin's spot as senior portfolio manager and director of research. Lufkin did not replace anyone. Both D'Addario and Lufkin report to Chuck Johnson, president. D'Addario said the debt group has been adding additional internal staffers from other areas to expand the fund's operations and investment groups. Calls to Lufkin were not returned by press time.

GoldenTree Financial is in the market ramping up one of the largest collateralized loan obligations the market has seen in the last six months as assets remain sparse for loan investors. Market sources said the manager is looking to reach a deal size as large as $650 million, despite the well-known challenge managers are facing in regard to competing for available new issue and finding good credits below par in the secondary market. Average deal size for cash flow arbitrage structures has been shrinking since last year to roughly $300-400 million. Officials at GoldenTree declined to provide any details.

Haverty Furniture Companies has refinanced its bank debt a year before it expired and extended its maturity to avoid violating its current assets versus liabilities covenant. The former $105 million, five-year revolver was set to mature in March 2003, appearing on the balance sheet as a short-term or current liability rather than as a long-term liability, explained Dennis Fink¸ executive v.p. and cfo. "When obligations become due in a year, they are looked at in a different way," he said. "For ratio purposes we didn't want it to show up as current." The company originally planned on the early refinance when it took out the facility in 1998.

Last week saw a firm tone through Thursday as the high-yield market absorbed two to three new issues per day without a hiccup. Bids were weaker in crossover retail names like JC Penney and Gap Inc. Here was selected other action:

Analysts and investors are divided as to whether there is still value in the auto sector. With rate hikes coming and varying credit problems at each of the big three, some analysts question the wisdom of being overweight the sector. "It is historically a good move once the Fed actually begins raising rates," says Vince Boberski, corporate bond strategist at RBC Dain Rauscher. That said, he believes it is still too early. He says bonds of Ford Motor Co., look like a good long-term value versus those of General Motors and Daimler-Chrysler, but that GM is the best short-term buy from a fundamental standpoint because of equity momentum, earnings and product lineup.

Craig Enright, a senior investment-grade corporate bond trader, has left buy-side firm Aegon USA Investment Management in Cedar Rapids, Iowa, to join GE Financial Assurance in Seattle. He reports jointly to Steve Devos in Seattle and Robert MacDougall in Stamford, Conn. They did not return calls, and Enright declined comment. He worked at Aegon for six years, and at the Chicago Board of Trade for 10 years prior to that. Mark Zinkula, head of corporate bond trading at Aegon, did not return calls.

American Express will to launch its first distressed debt fund on May 1, joining a wave of other investors seeking to take advantage of the growing opportunities in the distressed market, according to BW sister publication Loan Market Week. The fund currently stands at $52 million but will be open to investors for up to $250 million in assets under management. The new fund focuses on top positions in the capital structure with 80% of the portfolio dedicated to senior secured bank loans and bonds, according to John Engelen, the fund's senior portfolio manager. Engelen joined American Express in May 2001 to prepare the fund, after a stint running Salomon Smith Barney's global distressed effort.

American Express will launch its first distressed debt fund on May 1, joining a wave of other investors looking to take advantage of the growing opportunities in the distressed market. The fund currently stands at $52 million and will be open to investors with more than $250 million in assets under management. The new fund focuses on top positions in the capital structure with 80% of the portfolio dedicated to senior secured bank loans and bonds, according to John Engelen, the fund's senior portfolio manager. Engelen joined American Express in May 2001 to prepare the fund, after a stint running Salomon Smith Barney's global distressed effort.

A slew of highly leveraged financing packages are on the table for buyout firms, indicating the barbarians may be returning to the gate this summer. But market players are divided on whether all the deals will clear the market. J.P. Morgan and Morgan Stanley have proposed a 4.75 times debt to EBITDA offer for buyout firms looking to acquire Xerium from Apax Partners. This is hot on the heels of Deutsche Bank's offer of at least 5 times leverage for buyout firms looking at the Tyco plastics business. Similar pitches for Berry Plastics and Burger King are also said to be floating. "Leverage multiples are increasing, and it seems that institutions will be comfortable with levels approaching five times," said Rick Schnall, a partner at buyout firm Clayton, Dubilier & Rice.

Bear Stearns and CIBC World Markets have landed the lead roles for a $540 million high-yield debt package for Willis Stein & Partners, backing the purchase of Roundy's, a food wholesale and retail company. The leads will go to Roundy's existing lenders in Milwaukee on Monday, said one banker, and the institutional launch will be in mid-May.

Kirk Hartman has joined Wells Capital Management in the new position of director of portfolio management, where he will oversee all the portfolio managers of the firm's more than $110 billion in equity and fixed-income assets--including some $70 billion in fixed-income. He will report to Robert Bissell, the firm's president.