Derivs - Credit

Moody's Investors Service expects Asian collateralized loan obligations to remain stable, in spite of market turbulence.

Bayerische Landesbank's Hong Kong-based credit trading team is in the process of downsizing its portfolio with traders unwinding their positions, according to officials close to the situation.

Bank of America's Hong Kong debt capital markets team--the team responsible for collateralized debt obligations in the region--has been reduced to four people from approximately eight.

McDonnell Investment Management, an asset manager based in Oak Brook, Ill., is planning to expand its credit opportunity fund.

Saber rattling between Colombia, Ecuador and Venezuela has sparked investor interest in buying protection on sovereign bonds in the region.

Secondary market spreads of AAA U.K. residential mortgage-backed securities and credit-default swaps have widened out to near all-time highs.

A wholly owned affiliate of Vertical Capital has taken over as manager of four E*Trade Global Asset Management collateralized debt obligations.

Standard & Poor's has knocked down the ratings on 80 European synthetic collateralized debt obligations with exposure to U.S. sub-prime mortgages.

The Philippine government has launched a novel debt warrant and market watchers are expecting other emerging-market sovereigns to follow suit.

Trading in recovery swaps has picked up for many distressed names and some expect that trading levels for the swaps may be used to determine recovery values going forward rather than using the standard 40% level typically applied for bonds.

Street risk managers are pushing for credit flow desks to trade credit-default swaps with points upfront because it makes unwinding trades easier.

The asset-backed securities index has sold off following the release of remittance reports and discussion of monoline restructuring.