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The first bond backed by credit card collateral from continental Europe could be launched this year.

Cash flow collateralized debt obligations are starting to fill up on credit-default swaps, as a developing market for asset-backed protection is making these securities more attractive for inclusion in structured credit vehicles.

Schroder Investment Management in London has hired Ted Barac, v.p. and senior credit officer in European corporate bonds at Moody's Investors Service in London, as an associate director in high-yield credit research.

DDJ Capital Management is banking on plenty of distress in the economy and is raising a new $212 million fund to invest in bank debt, debtor-in-possession loans, second-lien term loans and Chapter 11 exit financings.

Potential fallen angels in Europe far outnumber aspiring rising stars despite the strong credit environment, in a counterintuitive trend.

Four Corners Capital Management, the L.A.-based loan management firm founded by leveraged-loan pioneer Mike McAdams, priced its debut $305 million collateralized loan obligation with the AAAs printing at LIBOR plus 30 basis points.

Gartmore Investment Management's European corporate bond fund is making an out-of-benchmark bet on government bonds.

Cash is mounting on the sidelines of the investment-grade corporate market and investors are decreasing their corporate allocations, according to a recent J.P. Morgan's survey of 50 institutional investors.

--Barrie Whitman, senior portfolio manager in high yield at Threadneedle Investments in London.

Lehman Brothers' decision to include Fitch Ratings in its global indices could spark a flurry of ratings shopping among issuers and may even drive borrowing costs lower for issuers, said buy- and sell-side fixed-income players.

Rayovac Corp. was less than forthcoming when it raised $700 million earlier this month, according to investors.