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Loomis Sayles & Company is planning on rotating $200-400 million from investment-grade corporate bonds into MBS to capture the next big spread product move, says portfolio manager Curt Mitchell. He is waiting for single-A corporate 10-year swap spreads to tighten from 80 basis points off treasuries to the 70 basis point level before firing up the move.

The Deal Roll-off Chart, provided by Capital DATA Loanware, lists the 50 largest leveraged credit facilities in the U.S. market that are due to mature in the coming month. It is designed to provide a look at potentially available money in the market as credits are renewed or retired.

The economy's response to both fiscal and monetary stimulus will lead to a rebound in equities and a backup in bond yields, making this a good time to play cyclical credits, argues Dan Portanova, portfolio manager with GroupAMA Asset Management. Portanova, manager of the firm's $700 million fixed-income account, employing a "get in early" style of investing, has recently participated in the Lehman Brothers Holdings and Morgan Stanley Dean Witter bond offerings. He bought the Lehman Brothers 6 1/4% notes of '06 (A2/A) because he sees them as a pure play on the presumed rebound of the institutional trading and sales business. He bought the Morgan Stanley Dean Witter 6 3/4% notes of '11 (Aa3/AA-) not only for the strength of its institutional businesses, but its diversity of earnings streams, including advisory and asset management services.

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.

Integrated Health Services bank debt last week traded up to the 46 1/2 to 47 range, up from 44-45. A total of $40 million changed hands over the course of the week. Dealers continue to attribute the levels to an improving industry. "Health care credits are up because the companies are up," said a dealer. Integrated Health, based in Sparks, Md., owns or operates approximately 365 nursing homes and 15 specialty hospitals that offer wound management, cardiac care, Alzheimer's disease treatment, and other rehabilitation services.

Long Island City, New York-based Standard Motor Products, Inc., has secured a $225 million revolving credit with GE Capital, which landed the lead over four other bidders, noted James Burke, cfo. The five-year credit represents the company's first foray into secured loan territory and Burke said the firm won with the most competitive bid. "GE Capital was picked to lead the deal following tough negotiations with five interested parties," Burke added, declining to name the competition. A mixture of factors including personnel narrowed the parade to two, and then flexible pricing and the overall package led to a decision, Burke explained.

Brentwood, Tenn-based LifePoint Hospital Inc.'s $210 million senior secured credit facility has been upgraded from B1 to Ba3 by Moody's Investors Service, reflecting strong performance since LifePoint's spin-off from HCA-The Healthcare Company in 1999 and a cash infusion of $100 million from a secondary offering. The company has limited competition in the rural areas it operates in and there is a more favorable reimbursement environment, noted Russell Pomerantz, v.p. senior analyst.

Nextel Communications' bank debt traded several times last week, with a total of $25 million changing hands. The company reportedly gave a presentation for Goldman Sachs early in the week stating that earnings will not be down as much as expected, and that reportedly sparked trading. Dealers said approximately $100 million has traded over the last two weeks as market players snatched up the credit for their books. The paper traded up to 96.58 early last week, which was up 3/4 of a point from previous levels. "It's the Allied Waste of old, just constantly trading. It's one of the better names of the industry and EBITDA-positive," a dealer said, attributing the paper swaps to "a lot of inter-dealer stuff."

Octagon Credit Investors is warehousing assets for a $375 million collateralized debt obligation that is expected to close in the next month. A source close to the deal said the manager has been in the market ramping up the vehicle, which will invest 80% in loans and 20% in high-yield bonds. Officials at Octagon declined to comment. The fund is reportedly investing most actively in defensive sectors, such as healthcare, food, and cable.

New York-based Primedia, Inc. is expected to tap the market soon for a $1 billion refinancing credit with J.P. Morgan Chase and Bank of America as the lead banks.Matt Flynn, treasurer for the media company, noted that the firm is in the fifth year of an existing seven-year credit, and it is prudent to replace current indebtedness. The new credit, also a seven-year deal, comes on the back of a successful $500 million 144A senior note issue, the proceeds of which will be used to refinance the credit and repurchase Primedia's existing 10-year notes. The lead on the existing $1.4 billion Primedia credit is Chase, said Flynn, with three other lead titles.