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Cumberland Advisors, a Vineland, N.J.-based firm is expecting a long term increase in CPI, and has been moving out of seven- to 20-year traditional treasuries and into inflation-indexed treasuries. David Kotok, Cumberland's cio, says he had been effecting a gradual shift until the Federal Reserve's surprise rate cut in January. Since then, he has been moving into TIPS to the greatest extent that he can, within the objectives that his clients have established; the firm manages several hundred accounts, largely for high net worth individuals.

David Albrycht, portfolio manager at Phoenix Investment Partners in Hartford, Conn., has sold some $20 million each in corporate and emerging market paper over the last month, in favor of slightly higher credit quality. Concerns about rising default rates in the high-yield market have prompted him to sell positions in companies such as Nextel Communications and Anthony Crane Rentals he says. Albrycht, who runs three fixed-income funds totaling about $500 million, has used the cash to rotate into positions that include Century Aluminum 113Ž4 % '08 (Ba3/BB-) and Dresser Inc. 9 3/8% '11 (B2/B).

360 Networks is being shuffled in the market, trading in the 55-60 range. Dealers say $30-40 million traded last week and that levels are down slightly from the 65-68 range the previous week. "They're just feeling the effects of all the telecom paper," said a dealer of the heavy trading volume. Another pointed to a recent downgrade of the bank debt to Caa3 from B2. The Vancouver, British Columbia-based company offers broadband network and services. Calls to a spokesman were not returned by press time.

Moody's Investors Service has assigned a Ba1 rating to Duluth, Ga.-based AGCO Corporation's $350 million secured revolving credit facility. The loan is rated a notch higher than the senior implied rating, on the expectation that the loan is secured against a security interest in the majority of AGCO's U.S., Canadian and U.K. assets, and a pledge of the outstanding capital stock of the material direct and indirect subsidiaries of the company.

Bank One is looking for lenders to round out the syndicate on a $120 million credit facility for CenterPoint Venture, a partnership between CenterPoint Properties Trust, CalPERS and Jones Lang LaSalle. The facility will be used to refinance an existing credit line. The venture targets industrial projects that do not fit in with CenterPoint's value-added strategy. A bank meeting will be held on Thursday. Bank One officials and CenterPoint officials did not return calls.

Bank of America is seeking commitments for a $100 million add-on to an existing $200 million revolving credit for San Francisco, based-Hearthstone MSII Homebuilding Investors, a private finance real estate company that invests and manages institutional capital in residential developments. The fund is seeking to invest in home-building projects and is adding the $100 million of new money to the existing credit taken out in January of last year, noted a banker familiar with the situation.

Bank of America will lead a $150 million credit for apparel retailer Ann Taylor, Inc., refinancing the company's $150 million revolving credit set to mature this June. First Union and FleetBoston Financial will act as syndication and documentation agents, respectively. An official at Ann Taylor declined to comment.

Tricon Global Restaurant's bank notched up to 983/4 last week, from the 98 range. Dealers attributed the slight improvement to the company's $750 million bond deal. Early this month the company announced it would use the bond deal to pay down the bank debt (LMW, 4/8). Tricon, based in Louiseville, Ky., owns KFC, Taco Bell, and Pizza Hut.

Bankers said Deutsche Bank and Credit Suisse First Boston sold roughly $400 million of a $550 million offer of 10-year, senior subordinated notes on behalf of U.S. Industries, pushing the company's $700 million bank deal forward as it is contingent on the bond sale. Calls to U.S. Industries were not returned by press time. Bank of America is also in a lead position for the loan. The pro rata part of the bank deal has reportedly received $55 million in commitments now that the deal is in play.

A rally in the wireline telecom sector? Few players think it will happen in the short term. Last week's Chapter 11 filing by Winstar Communications was the latest blow to the sector and is seen by junk market players as the reason behind the sharp sell-off in wireline telecom bonds. Moreover, Winstar's burgeoning legal battle with Lucent Technologies is being seen as an indication of a deepening credit crunch in the beleaguered sector. Several sell-side analysts argue that Winstar and other wireline companies have grim operating prospects going forward given the intense cash needs of building continent wide or even global networks. They also note that investors are disenchanted with the sector as a whole as evidenced by the inability of Lucent and TeleCorp PCS to move $425 million in vendor financing debt (in spite of what many saw as an attractive 17% yield). A Lucent spokesperson says the company plans to re-offer the notes in the future, depending on market conditions (see story, page 4).

Some packaging credits are trading up on the belief that they are wrapped in a recession-proof box. A piece of Graham Packaging's bank debt traded at 95 last week, up two points for the name. Gaylord Container Corp. traded at 95, up 1/4 of a point. "There's some attention on deals that are non-telecom. There's real asset valuation backing these companies," a dealer explained. "In a bad economy, you're still going to buy cereal or orange juice, but you may not buy a car." Buyers and sellers could not be ascertained. A tense market is said to be working in these credits' favor.