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As part of its goal to streamline the process supporting over-the-counter equity derivatives trading by standardizing documentation, the International Swaps and Derivatives Association has published the Index Variance Swap Annex and the Share Variance Swap Annex (the Variance Annexes) for the interdealer market.

London-based hedge fund Orn Capital is considering developing new long/short hedge funds.

U.S.-based structurers of synthetic collateralized debt obligations are offering inflation-linked exposure to structured credit deals. Matthew Zola, co-head of North American structured credit at Morgan Stanley in New York, noted that while inflation-linked deals are more common in Europe, they have started to be issued in the U.S.

The Financial Services Authority has thrown an unexpected obstacle in the path of the UK covered bond market by signalling that it will restrict the bonds' use as a funding instrument.

The Belgian Debt Agency is re-examining the role that Citigroup plays in its annual borrowing program, on the heels of Citi's recent controversial rapid-fire trading in European Union debt in which the firm is said to have sold €11 billion of bonds and then bought back €4 billion at a lower price in a two minute period.

BB&T Capital Markets has hired the bulk of the high-yield team from Fieldstone Capital Group, a New York broker-dealer, to open a new high-yield office in New York, said Mark Lichtman, managing director and head of high-yield at BB&T.

BNP Paribas is building up its corporate bond sales department and is considering adding a high-yield desk in its Chicago office, said Matthew Schultheis, who was recently appointed director and head of fixed-income sales in the Windy City.

Citigroup Investments is hard-pressed to find value in the corporate bond market and is finding it difficult to put new money to work, said Mike Plage, a trader who manages $23 billion in high-grade and high-yield corporate bonds in Hartford, Conn. "Everything feels full; it's hard to find value," he stated.

Credit Suisse First Boston in London has hired Bob Ferguson, executive director in high-yield sales at UBS in London, as managing director in high-yield sales.

Anthony van Daalen, senior v.p. and head of $1.25 billion in taxable fixed income at Wright Investors Service, on its recent move to trim duration.

Frankfurt-based DWS Investments is putting cash to work in lower-rated high-yield bonds that are less sensitive to interest rates, in anticipation of interest rates rising and credit default rates trending down.