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The residential mortgage-backed securities index, launched last month, has so far proven hugely popular with macro hedge funds, but not with the intended class of asset-backed securities investors.

A spate of CDO restructurings in Japan for non-rated transactions are in the cards in the run up to Basel II implementation.

CMBX, the planned synthetic commercial mortgage-backed securities index, is expected to start trading by March 7.

Credit Suisse in London has named Matt Downer head of convertibles and equity derivatives flow trading. Downer was previously only responsible for convertibles trading.

The combination of comparatively high equity correlation and low credit correlation is tempting hedge funds to play derivatives of the asset classes against each other.

The first variance swap on a credit-default swap index has been traded by Credit Suisse and Solent Capital Partners, a London hedge fund.

GFI Group brokered its first European inter-dealer tranchelet trade on Tuesday.

Hedge funds were taking advantage of low long-dated U.S. dollar/yen implied volatility last week to position for long-term rate hikes from the Bank of Japan.

Dharmendra Patel, v.p. and equity derivatives strategist at Goldman Sachs in London, has left the firm. Patel, reached on his cell phone, confirmed the departure, declining further comment.

High-yield credit-default swaps in Asia are gaining momentum due to increased hedge fund interest and a drive from dealers looking to widen the range of tradable names.

HSBC's David Choi, head of interest-rate trading in the treasury and capital markets division in Seoul, has left.