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Five-year credit-default swap spreads on Corus, a U.K. metals company, tightened 40 basis points last week to 510bps as traders started to price in a positive trading statement issued by the group on Thursday.

Fixed income professionals said the imminent departure of Credit Suisse First Boston’s CEO, John Mack, is unlikely to spark a fixed-income reorg.

The implied volatility of options on equities can be useful in predicting credit spreads and default recoveries.

Interest rate swap providers for collateralized debt obligations may have to consolidate the whole portfolio even though they do not own any of the assets or liabilities.

Securities heavyweights Goldman Sachs and Lehman Brothers are planning to enter the onshore Korean derivatives market in the coming months.

The huge increase in credit derivatives referenced to asset-backed securities means changes in ABS rules will affect the derivatives markets.

--Jim Mountain, partner in the securitization practice at Deloitte in New York, commenting on the impact of a possible FIN46R ruling.

UBS last week began offering what it thinks is one of the first equity-linked notes of its kind.

Wachovia Bank plans to build up its Asian credit derivatives presence and has hired Greg Donohugh, senior v.p. in fixed income at Lehman Brothers in Hong Kong, as a managing director in fixed income in Hong Kong to steer the effort.

U.S. hedge fund manager Chatham Asset Management will allow investors to take short credit exposures by going long a credit derivatives index in its soon to be launched Chatham Asset Partners Short Credit Fund.

UBS has moved its private bank flow desk to London from Switzerland to create a central hub for equity derivative sales.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market.