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The two-way market for single-name credit options has dried up in Europe because players have shied away from carrying the short side.

Principal Global Investors (Australia) is looking to make its initial foray into collateralized debt obligations for its Aussie fund this year.

Pension funds in the U.K. will likely turn away from using credit derivatives because of a planned pension protection regulation that would levy higher charges on funds using them.

Credit players have started dividing and trading small portions of the equity slice in credit derivative indices.

A draft protocol for settling credit-default swaps on controversial classes of Calpine debt is expected to be finalized this week. The International Swaps and Derivatives Association released a preliminary 2006 Calpine CDS Protocol Dec. 30, 10 days after the U.S. power supplier filed for bankruptcy protection, and lawyers said they expect it to be open to adherence by Thursday.

Steve Snizek, co-head of trading at Deutsche Bank, is returning to London after about a year-and-a-half on the New York desk.

Can't Buy Me (Loans) ...

The dealers and buysiders working together to develop a framework and ground rules for loan-deliverable credit default swaps are close to putting the finishing touches on settlement and confirm procedures.

Private equity firm Levine Leichtman Capital Partners is reportedly setting up a distressed debt fund.

The Loan Syndications and Trading Association plans to publish guidelines next year that govern the use of private information for players that invest in both the private and public securities markets.

-- Ranajoy Sakar, associate director and CDO and ARMS analyst at Bear Stearns, on the potential of credit default swaps on collateralized loan obligations being the "new new" thing in 2006.

The following charts show the top five advancers and decliners in terms of % moves in the loan, bond and credit default swap markets for the previous week.