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J.P. Morgan Securities has hired David Montano to become chief of all mortgage research--a new slot--at the firm. He joins fromCredit Suisse First Boston, where he ran the firm's MBS research effort. He will report jointly to residential MBS chief Kevin Finnerty and Nanette Abuhoff, head of interest-rate research. Montano, who made his first appearance last year on the Institutional Investor All American Fixed-Income Research Team, will take over for Joan Rogers, who has moved to the bank's MBS investment portfolio side. Montano, who had left CSFB as of last Thursday, did not take any colleagues with him, nor was it certain when he would begin at J.P. Morgan, or what his title would be. Montano could not be reached and Finnerty did not return a phone call seeking comment.

The Loan Syndications and Trading Association has approved a proposal to develop additional model credit agreement provisions governing agent and lender rights and obligations. The project aims to govern the relationship between the agent and the lending syndicate --as well as certain other technical matters -- and is designed to reduce uncertainty, particularly in times of market stress, noted Jane Summers, general counsel for the LSTA.

Magnum Hunter Resources has completed the first phase of its financing backing its merger with Prize Energy and is now planning the retail round of syndication on the loan piece. The company has wrapped a successful bond offering and managing agent bank round. According to a banker familiar with the situation, four banks have come in at the senior managing agent level, in addition to leads Deutsche Bank, CIBC World Markets and BNP Paribas. The retail round will be done in April when second-tier lenders will be approached.

J.P. Morgan and Citibank last week launched syndication of a $430 million refinancing package for camera-maker Panavision with $180 million of bank debt and $250 million of supposedly silent, second-lien bonds. The silent lien refers to bondholders not having a voice if the bank debt holders decide to move the collateral in case of foreclosure. A J.P. Morgan spokesman denied the bonds contain the silent component, but he said the bondholders do have a second lien on the collateral package. The new deal refinances $340 million in bank debt and so significantly reduces the total amount of bank debt from 4 times to 2 times, noted a banker. The incorporation of the second lien is similar to the Revlon deal recently led by J.P. Morgan, bankers said. Scott Seybold, cfo and executive v.p. of Panavision, could not be contacted, according to company officials.

Morgan Stanley has hired Michael Garrity, a high-yield services analyst from Putnam Investments. He will report to Bill Reiland, head of North American credit research at Morgan Stanley. Garrity will fill a position vacated by Bob Packer, who has moved internally to the integrated credit group--which monitors and forecasts credit ratings for prospective issuers. Reiland says Morgan Stanley vetted the hire through Putnam before making Garrity a formal offer. The analyst will make the move to New York next month.

Owens-Corning's bank debt ticked up last week, with $30-35 million trading at 70-71 as market players continue to speculate on the effect that subsidiary guarantees will have on the payback bank debt holders receive from the bankrupt fiberglass company. Between $20-25 million traded last Monday at 70 and by midweek roughly $10 million more in trades had moved the name to the 71 level. One trader explained that some of the company's subsidiaries held patents and are entitled to a stream of royalties. The guarantees suggest that bank creditors would be entitled to these proceeds and other subsidiary value.

Dade Behring's bank debt is flying high in the 109-110 range with $10 million trading on Wednesday, as investors gauge the value of a potential debt to equity swap. Two weeks ago the name had been priced in the 105-106 context. The company has been in negotiations with lenders, bond and equity holders for some time, but traders now speculate that an agreement is in the offing. A spokesman for Dade Behring confirmed that the company is continuing "productive negotiations," but said no agreement had been reached. He also noted the company's recent strong performance.

RCN's bank debt jumped last week with $30 million trading as the market buzzed with word that the company will pay down approximately 25% of its outstanding bank debt. About $25 million traded at 80, up from 70 earlier in the month, with PNC Bank reportedly involved in the deal. A spokeswoman for the bank declined to comment. Earlier last week, $5 million changed hands at 78.

Crown Cork & Seal's bank debt traded flat at 87 last week with $20 million changing hands on continued belief that the company will have to refinance its debt. Dealers believe the company plans to take out its 2002 maturing debt, which includes $350 million in bond debt and the outstanding amount on a $400 million term loan. It will then need to refinance an additional $2.2 billion dollars in bank debt, which expires in December 2003, before it begins to deal with $400 million of bonds also maturing in December 2003. Rumors suggest that any refinancing plan would be structured such that bank debt holders are backed by a first lien on the company's assets and bond holders would be backed by a second lien on the company's assets. This security would place bank and bond creditors above asbestos liabilities in case of default, one banker explained.

Corporate Office Properties Trust, a real estate investment trust, has brought PBNT Bank on board for a $25 million add on to an original $125 million revolving credit line. The company approached PBNT in an effort to extend the credit to another of its relationship banks, said Roger Waesche, senior v.p. and cfo of Corporate Office Properties. "We want to make sure that we have enough capacity, so we spread [the credit] out on a number of banks," he explained. PBNT committed $15 million to the expanded credit and the remaining $10 million was raised through the original syndicate led by Deutsche Bank.

Approximately $48 million of Safety-Kleen's bank debt traded last week, culminating with an $18 million auction of the pro rata piece in the 44-45 range. Traders said the name was moving on the belief that a lawsuit against the company will soon settle in Safety-Kleen's favor. UBS Warburg is rumored to have traded a total of $30 million of the name in the 40s range earlier in the week, although no one at the bank could be reached for comment. John Kyte, Safety-Kleen's spokesman, said he could not comment on the pending litigation, but added, "Our position is that the case has no merit."