CSFB Wins Franklin Portfolio

Credit Suisse First Boston won a $73 million portfolio earlier this month in an auction held by Franklin Advisers. The cover bid was 100.57. The portfolio contained 26 names with only one distressed credit. Franklin officials and a CSFB trader declined comment.

While the contents of the portfolio could not be determined, Franklin has four collateralized loan obligations and multiple floating-rate funds with total loan assets under management of $3.7 billion. At the beginning of this year the floating-rate debt group's portfolio management team went through a reorganization following the departure of CIO Chauncey Lufkin and lead portfolio managerRichard D'Addario. D'Addario is at Avenue Capital Management building a loan business and has hired several Franklin employees. Lufkin is said to be building his own firm.