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Crédit Agricole Indosuez and Crédit Lyonnais are preparing to launch a pair of asset-backed synthetic collateralized debt obligations, in the run-up to the integration of the firms next month.

Deutsche Bank has structured what is believed to be the first fund--with a UCITS wrapper--that gives exposure to an underlying hedge fund index.

Credit-default swaps referenced to sovereign Korea saw strong interest last week on the back of overseas funds grabbing protection.

* Ernest Patrikis, senior v.p. and general counsel at American International Group, thinks regulation likely will prevent insurers from taking credit derivatives market share from the dealers.

The burden of excessive regulation and accounting rules are preventing the OTC market working efficiently, hindering innovation and in some cases deterring end users from hedging risks, industry heavyweights said at the conference.

End users' disclosure of their derivatives positions is unsatisfactory despite some general improvements in transparency, according to Hung Tran, deputy director in international capital markets development at the International Monetary Fund.

Patrick Parkinson, associate director at the Federal Reserve Board, said more banks should use credit derivatives to transfer credit risk.

Some 700 derivatives professionals flocked to Chicago last week for ISDA AGM. Karen Brettell, senior reporter, and Jeremy Carter, managing editor, report.

JPMorgan plans to take advantage of enhanced retail distribution following its pending acquisition of Bank One by offering retail investors hybrid structures.

JPMorgan has hired Sean Ko, credit derivatives marketer at BNP Paribas in Hong Kong, for a similar role in Seoul. Ko, who started last week, confirmed the move but declined further comment.

Some fixed-income investors are increasing their allocations to cash given the current low bond yields.