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UBS Warburg Japan intends to expand its equity hedge fund sales team in Tokyo in the coming months to capture growth in the hedge fund industry and take advantage of other investment banks' headcount reductions. "There are plenty of good people out there either out of work or very concerned about their jobs and the growth in our business gives us a natural need for more," said Nick Garling, head of hedge fund sales at UBS in Tokyo.

UBS Warburg is planning to place a greater emphasis on structured credit research as part of its European credit effort, following a change in leadership. Andy Evans, previously a credit analyst at the firm, started earlier this month as head of European credit strategy in London. Immediately before the move Evans was working in the business side of Warburg's e-commerce division. He is a direct replacement for Derek Brawn, who starts at Dresdner Kleinwort Wasserstein as head of European credit strategy next month. Brawn confirmed the move, declining further comment. An official in DrKW's research department also declined comment.

Allied Investment Advisors, a Baltimore, Md. money manager, will allocate some 5-10%, or $7-14 million, to two- and three-year corporate floaters. Wilmer Smith, a portfolio manager who oversees a $140 mutual fund for the firm, says he is waiting for 10-year Treasury yields to retouch 4.5% before making the move, which he expects to happen once continued poor employment data causes a further decline in consumer confidence. He particularly likes Sallie Mae asset-backed student loans, which will reset at higher yields if, as he expects, the government increases T-bill issuance. Allied would sell two-, five-, and 10-year Treasuries to finance the move.

Groupama Asset Management is rotating 15% of its portfolio, or $15 million, from Treasuries into corporates as the firm anticipates an economic rebound and better corporate earnings. Dan Portanova, portfolio manager at the New York-based firm, says the move is duration neutral, as it is selling Treasuries with a comparable duration to the corporates it is buying. He adds that he predicts the yield curve will steepen over the next few months, given what he is calling the end of the government bond rally.

Friends Ivory & Sime has bought £100 million of new issuance in the past month, and will continue to add newly minted paper to its £7.5 billion credit portfolio. London-based Etienne Gorgeon, a portfolio manager, says he is looking at the upcoming £825 million Meadowhall issue, a commercial mortgage asset-backed deal originated by British Land. He is considering the deal because of its size, and because he like ABS deals as a diversification tool. Over the past month, Gorgeon has added Tyco International's 61Ž2% of '11, HBOS' undated 6.461%, CGNU's 6.125% of '36, British American Tobacco's 4.875% of '09 and Lafarge's 6.375% of '07. He picked up these bonds because new issuance is coming at attractive spreads and he is positive on these credits.

They're traders, not fighters! Dealers from Bank of America and Société Générale were in attendance at an amateur boxing match held at the New York Athletic Club on Monday night. The market players were there on a spectator basis only and were said to have had a good time--although the fighting spirit they bring to the desk came through when one called it a good "blood and booze" opportunity.

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

About $2.5 million of Allied Waste's bank debt traded up to 99 1/4 last week on anticipation that the term loan will soon be paid off through a bond deal. Two weeks ago, the bank debt notched up to 98 1/2 from the 96 7/8 range following the announcement that the company is increasing the size of its bond deal to $750 million from $500 million. The increase will pay down the tranche "A" and the "B/C" paper. At that time dealers said there was heavy trading in the name topping off at around $25 million. Calls to Thomas Ryan, cfo, and Mike Burnett, director of investor relations, were not returned.

Amkor Technology has amended its credit agreement, replacing the existing financial covenants with covenants based on minimum liquidity, maximum capital expenditures and minimum levels of EBITDA. "In May of 2000, the industry was booming, and the covenants reflected a more robust forecast," said Ken Joyce, cfo. Based in Chandler, Ariz., the company offers semiconductor companies and electronics original equipment manufacturers design and manufacturing services.

The wave of corporate refinancings that is knocking off short-term debt with bond deals is having a ripple effect in the secondary loan market, where staple names are firming as other paper is retired. Last week, Lyondell Chemical Company announced plans for a $750 million bond deal that would take out some of its bank debt, making it the third company in two weeks said to be coming to market with a bond deal to replace existing bank debt. Most of the paper will be paid back at par or better so there is short-term upside. But chunks of bank debt are leaving a market that has not had significant new issues for three months.

Chris Johnson, chairman of global leveraged finance at Merrill Lynch, has taken the voluntary package being offered by the firm to employees worldwide designed to trim costs in the bear market. Jessica Oppenheimer, a spokeswoman for Merrill, confirmed he is no longer with the firm, but declined comment on any other departures. Johnson was unavailable for comment.

Owens-Illinois' term loan traded up to the high 97 range from the 95 range early last week on the rumor of a potential bond deal. Dealers reported the trading volume was small, and the bond issue rumblings could not be confirmed. "It's just word going around the market. People are willing to trade on the momentum," a dealer said. The revolver was quoted at 92 early last week. Owens Illinois is a glass manufacturer based in Toledo, Ohio. Calls to R. Scott Trumbull, cfo, were not returned. A spokeswoman also did not return calls by press time.