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Judah Frankel, the inventor of the planned amortization class (PAC) bond, has re-emerged with a new firm, Fibonacci Capital. He is in the process of selecting a prime broker ahead of the launch of his Fibonacci Capital Fund in the fall.

Bristol & West, a U.K. bank owned by the Bank of Ireland, is selling a capital guaranteed dynamic bond to retail investors. Laurence Sanders, treasury product advisor to Bristol & West in Bristol said JPMorgan structured this product using OTC call options on the FTSE 100.

What is a banker expected to do in the dog days of summer? Well, Credit Suisse First Boston's fixed-income CDO research team has decided there will be no market report this week as they have "Gone Fish'n." According to last week's research, they hope that the market enjoys the rest of the summer.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

"For credit derivatives, while Japan is still ahead of ex-Japan Asia, the gap has been breached quite significantly."--Chris Nicholas, managing director and head of Asian credit markets at JPMorgan in Hong Kong, explaining the motivation behind moving the Asian head of structured credit products to Hong Kong. For complete story, click here.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

"It's an idea I have."--Hee Dong Kim, head of the financial engineering department at Korea Exchange Bank in Seoul, talking about his plans for investing in synthetic collateralized debt obligations. For complete story , click here.

UBS is preparing to trade Mexican peso-denominated derivatives, including interest rate and credit products by the end of the month as part of its expansion into emerging markets. "It's taken some time but we're all set now," said Joonkee Hong, global head of emerging market derivatives in New York.

Oil and gas producer Devon Energy has entered an interest-rate swap to convert a fixed-rate USD500 million note issue into a synthetic floater. Brian Engel, spokesman in Oklahoma City, explained that the corporate is able to reduce its interest rate costs by 1.15% via the swap. This, in turn, creates savings of USD5.75 million for the company.

ABN AMRO is purchasing embedded digital options on forward dollar swap spreads to structure a 10-year callable medium-term note. The note offers a 6.3% annualized coupon every day that the 30-year swap rate is above the two-year rate, which is a pick up of up to 130 basis points on 10-year Treasury bonds. Thomas Zieglmeyier, Swiss head of derivatives sales for financial markets in Zurich, said, "This note offers our clients the ability to take a view on the relative rather than absolute values of the 30-year and two-year dollar swap rates as well as offering a higher yield." The two-year rate normally trades below the 30-year rate, however, the market is expecting rates to rise soon and as a result the yield curve is steep. Once the Federal Reserve raises rates the curve is likely to flatten, but if the market then starts to price in fresh rate cuts the curve could invert.