Securitization People and Markets

Radian Asset Assurance has added Chris Allen and Michele Kearns as v.p.s in the global structured products division of its London office. Both will start next week and report to Ned Bowers, managing director and head of global structured products, who is based in New York. Elizabeth Emmons, a spokeswoman with the Radian Group, Radian Assurance's parent company, says both positions were created to expand Radian Asset Assurance's presence overseas. The two securitization pros will work at structuring and originating collateralized debt obligations, asset-backed securities and asset-backed commercial paper, she says.

The Royal Bank of Scotland has hired Thierry Sebton, Mizuho Corporate Bank's second-in-command in its structured finance department, and two of his junior colleagues, whose names could not be ascertained as of press time. They are joining RBS' asset-backed securitization team and will report to Philip Basil, head of ABS. Basil refused to answer any questions about the hires, where they fit into the ABS department's plans or who, if anyone, they replaced. A RBS spokeswoman did not return calls by press time. A spokesman at Mizuho confirmed Sebton's departure to RBS, but declined further comment.

UBS Warburg has launched a European distressed debt effort to be coordinated through its London office. The firm has hired Martin Teevan, formerly a member of ING Barings' high-yield team in London, to spearhead the effort in the newly created position of director of distressed debt trading. Teevan will start out by trading names from the firm's high-yield book that have fallen into the distressed category, a firm official said. He reports to Jeff Horan and Drew Doscher, Stamford, Conn.-based co-heads of global distressed debt. Andrew Casswell, head of high-yield trading at ING says Teevan, who left the firm six months ago, will not be replaced.

Wells Capital Management is moving to drum up new Asian clients for its international fixed-income product, which invests in non-U.S. sovereign debt. The firm will eventually look to hire new officials in its existing offices in Hong Kong and Taiwan, and start new offices in Manila and Singapore, says Graham Allen, the firm's director of global fixed-income. He says a widespread shift among investors into international bonds and a sense that the dollar may be topping are among the reasons behind the push. Wells Capital hopes to land $200-400 million in new Asian business for the product over the next 18 months.

Deutsche Bank has hired Seth Vance, formerly Schroder Salomon Smith Barney's head of collateralized debt obligations for Europe, as a senior banker on its London-based securitization team. Vance joined Deutsche Bank in late April and will report to Michael Raynes, head of the European securitization group. Raynes says Vance will work on CDOs, but will also cover a number of different fronts. Calls to SSSB's press office inquiring about Vance's replacement were not returned.

The European high-yield market appears to have propped itself up in bed as it struggles to recover from an extended technology, media and telecom hangover. After a first quarter that saw only six new issues, two deals were snapped up in two days last week, and a third, from Britax Group, which makes autoparts and car seats, was expected to price last Thursday or Friday. Several other deals are said to be on the way.

A $200 million high-yield deal recently pulled by PCA International will likely be restructured and brought to market in the next month or two, according to an official familiar with the deal. The seven-year deal was to refinance existing debt. Goldman Sachs is still expected to underwrite the deal. Bankers were reportedly hoping for a B3/B- rating, but the senior unsecured notes were assigned a Caa1 rating from Moody's Investors Service. Marie Menendez, a Moody's analyst, would not comment on how the deal could be structured to get a higher rating. Price talk had been sweetened to 12.5%, with 5% equity warrants, according to a report by Dow Jones Newswires. Don Mullen, co-head of leveraged finance at Goldman Sachs, referred calls to Bruce Corwin, a firm spokesman, who declined to comment. Don Norsworthy, PCA's cfo, did not return calls. PCA International sells photography services in retail locations such as Wal-Mart Stores.

Bank of America is aggressively hiring for its London-based European fixed-income sales and trading efforts. Peter Plaut, head of European credit research, says the firm is looking to build its investment-grade and high-yield desks, but did not give a specific number of hires to be made. The firm has had a presence in the U.K. for two years and is looking to expand its headcount in response to business growth, he adds. Industry officials say B of A is also looking to ramp up its asset-backed securitization team. Calls to Arrington Mixon, head of European fixed income, and Steve Gandy, head of European ABS, were not returned.

WorldCom excepted, the high-yield market was flat to slightly improved overall. Issuance continued to be solid, with two or -three European deals performing well (see story, page 1). Canadian telco Call-Net Enterprises' 10.625% notes were a big loser, dropping 20 points on poor numbers. Here was other selected action.