Kmart's debt levels fluctuated again last week as investors continue to gauge the value of guarantees that market players are saying the company's subsidiaries will provide on the bank debt (LMW, 2/18). The name began last week with $5 million trading in the 60-63 range down from the 68-71 two weeks ago. After hitting the 62-64 level mid-week, the credit popped up again with $20 million of the name trading in the 63-65 range, said traders. Buyers and sellers could not be determined. Lehman Brothers is rumored to be compiling a report on the retail chain's subsidiaries to shed light on the value of guarantees on the parent company's debt although a bank spokesman denied knowledge of such research.