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Banca Popolare di Milano, Italy's 12th largest bank, last Friday launched the largest ever deal backed by Italian residential mortgages. Jointly lead managed by JP Morgan and Schroder Salomon Smith Barney (SSSB), the deal launched just a week after a Eu766.5m RMBS by Bipop Carire lead managed by Dresdner Kleinwort Wasserstein.

Schroder Salomon Smith Barney has hired Farid Bassiri, v.p. local currency swaps and options trader at Credit Suisse First Boston in London, as a trader in the credit derivatives group. Officials familiar with the move said Bassiri jumped ship because Salomon's local currency trading desk combines credit derivatives and foreign exchange instruments, enabling him to use a broader spectrum of products than at CSFB, where the two asset classes are traded separately. The location of firms' credit derivatives departments within the overall trading structure is becoming increasingly important in shaping where credit derivatives professionals want to work (DW, 7/16).

Highland Capital Management is in the process of closing a $500 million collateralized debt obligation after underwriter Salomon Smith Barney issued $458 million in notes two weeks ago to fund the vehicle. Bankers close to the deal said Highland had been holding off closing the deal in hopes of ramping up additional collateral which would upsize the vehicle to roughly $600 million. "They changed their minds and decided to get it out the door," said one banker, declining further comment on whether the fund was able to secure additional assets or if it decided to respond to a favorable time in the bond market. He noted, that unlike other funds, Highland does not have plans to ramp up any additional assets after close. Officials at Highland did not return phone calls by press time.

There was heavy trading in Nextel Communications' bank debt early last week after the company released its quarterly numbers. Levels notched up to the 94.25 to 94.50 range from 93 1/4 and approximately $20 million had changed hands by Tuesday morning. The Reston, Va.-based company released numbers early last week , indicating subscriptions are up by $1 million.

Dealers were sharply divided last week on where Safety Kleen's bank debt has traded, or whether there had been any trades at all, with some dealers saying there were attempts to talk down the levels in order to buy the debt. While there were reports early in the week of a trade at 32, one dealer said there were no trades and that the bid was firm at 33. "People want to buy it. There are 33 bids all over," he said, adding that the market is 33-36. "It might come down. People want it to go in the 20s." The attraction, he predicts, is that the debt will move beyond a 33-36 level on better industry conditions. Safety Kleen, based in Columbia, S.C., picks up, disposes and treats industrial and commercial waste.

Societe Generale has hired Randy Campbell to fill the hole in its sports advisory group caused by the departure of its 10-person team to Lehman Brothers.

A week after Dade Behring announced a bankruptcy reorganization plan, its debt traded heavily on speculation that holders are well-positioned. Approximately $23 million changed hands early in the week, but levels remained stable around 80. "People are starting to see a little more value in the name and feel there could be some sort of take out or positive event," a dealer remarked. Specifics on the restructuring could not be ascertained, but a few dealers speculated that a debt for equity swap was helping push the debt. They said if banks got equity, that would put them in a better position as the company reorganized and pulled out of Chapter 11.

Barclays and J.P. Morgan are launching a $100 million credit for Itasca, Ill.-based PrimeCo Personal Communications, the Chicago-based service provider that is being acquired by Clarity Partners and Pacific Capital Group. Green Leaf Ridge Company, J.P. Morgan Capital Partners and Tregan Partners are in on the acquisition, which is being primarily funded by equity. Calls to officials at the buyout shops were referred to a spokeswoman for Clarity, who declined comment on the terms of the acquisition or the proposed loan. Calls to officials at Barclays and J.P. Morgan were not returned.

Charter Communications' debt softened to 99 3/8 in a $2.5 million trade last week. Dealers say rumors of more cable paper pushed levels down. It could not be determined which firm traded the piece. Dealers believe another cable deal is in the pipeline, although specifics could not be determined. "It's either Charter's doing a new deal or another cable company," a trader speculated, regarding the expectation that an increase in cable paper may be on the horizon. Charter, a cable systems operator with more than six million subscribers, is based in St. Louis, Mo. Another dealer noted that Comcast's move to buy AT&T may also flood the market with additional cable paper.

Credit Suisse First Boston and National City Bank held a bank meeting July 25 for Cleveland-based chemical company Ferro's $900 million credit. The loan backs the $540 million acquisition of dmc2, OM Group's electronics materials, ceramics and pigments operations. It also refinances debt. The package consists of a $200 million, 364-day revolver that carries a 3/8% commitment fee, a $400 million, five-year revolver that has a 1/2% commitment fee and a $300 million six-month bridge loan. The out-of-the-box spread is LIBOR plus 2%. CSFB is the syndication agent and National City has the administration role. The credit is rated BBB-/Baa3. Officials at CSFB and National City declined to comment.

Spectrasite Holdings' bank debt traded down slightly to the 93.75 range last week, which is down from 94 1/2. Dealers say tower credits are starting to feel the weight of telecom paper. Charter Communications' bank debt traded at 99 3/8, down a quarter of a point, in a $2.5 million swap. Rumors of more cable paper coming out have softened levels, dealers say.