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The Inland Revenue, the U.K.'s tax authority, has proposed a change to the way it taxes equity derivatives that could mean corporates will stop using derivatives to hedge equity investments.

RBS Capital Market's push into the structured credit market was given a major push last week when it snared Merrill Lynch's top dog, Vincent Dahinden, European head of structured credit in London.

Some 2,700 asset-backed security professionals met in Phoenix last week to discuss the latest innovations in the industry.

Abbey National has converted the proceeds of a recent CAD475 million (USD357 million) bond issue into sterling.

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

The need for better disclosure from issuers and greater transparency as part of the securitization process was a major theme at the ABS West conference last week in Phoenix.

* Flying High: A member of Fitch Ratings' asset-backed team made an unplanned stop on the way to the conference when his Southwest Airlines flight was diverted to Amarillo, Texas. Police were called to arrest a drunk and unruly passenger.

Asset-backed spreads are tighter than their benchmark. Spreads on some short-dated, triple-A credit card and auto loan transactions have inched below swap spreads, in what market participants are calling a historical first.

Sage Advisory Services is planning to invest more in defensive products over the coming year, such as mortgages, asset-backeds and govvies.

--Steve Capp, Pinnacle Entertainment's cfo, on the benefits of its newly completed debt facilities.

Fixed income, watch out.

More than 2,500 securitization professionals gathered at the J.W. Marriott Desert Ridge Resort & Spa in Phoenix for the ABS West summit last week. Bankers, lawyers, investors, rating agency officials, trustees and accountants discussed some of the recent trends and pressing issues in the market (at least when they were not playing golf or enjoying the nightlife). Managing Editor Scott Goodwin attended.