Free content

Craig James, a senior equity derivatives trader at Merrill Lynch in New York, has quit the firm. James, who could not be reached, is not thought to have joined a competitor, said a official familiar with his departure. At Merrill, James reported to Val Mihan, managing director, who declined comment.

Many credit derivatives traders were caught be surprise last week when five-year credit protection on biotechnology corporate Monsanto Co. exploded to 96 basis points last Wednesday from 40bps where it had traded only two days before. While Monsanto is known to have problems, particularly its ongoing litigation with its former chemicals division Solutia, this fact has been well known for a while and does not explain such a huge, sudden shift, noted one New York-based trader. Protection on Monsanto gapped out following a stampede of protection buying on the name, as though suddenly exposed players had a delayed reaction or the need to protect themselves, said another trader.

Scott Kerson, former head of commodity marketing for the Americas at Deutsche Bank in New York, has joined Merrill Lynch to head its energy marketing effort. Kerson is working on Merrill's newly minted oil and gas trading operation and reports to Kuljinder Chase, head of the firm's energy trading business. Both Kerson and Chase referred calls to the press office. Michael DuVally, spokesman in New York, declined comment.

Credit-default swap spreads on European telecom companies widened last week as investors took profit on their positions. Protection on France Telecom widened to 90/95 basis points on Thursday from 73bps the previous week, according to a trader. The move drove in spreads across the board by around 5bps, noted the trader.

"Now when we see an opportunity we can react more quickly."--Darren Smith, co-head of CDOs at Dresdner Kleinwort Wasserstein in London, commenting on why the firm set up a joint venture with its trading desk. For complete story, click here.

Trafigura Group, a privately owned commodity trading company headquartered in Lucerne, Switzerland is beefing up its energy derivatives trading desk and has hired Chris Jamieson, head of oil trading at EDF Trading, to lead the effort. Jamieson declined to comment.

Volkswagen Financial Services, the financial arm of the auto manufacturer, has entered an interest rate swap to switch floating rates. In the swap, Volkswagen pays the overnight money market rate and receives a rate based on three-month Euribor, according to Albrecht Moehle, head of fixed income in the group treasury in Munich.

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.

Ricardo Pascoe, global head of foreign exchange, alternative investment strategies and proprietary trading at Commerzbank Securities, and managing director of the London office, has resigned. Pascoe resigned for personal reasons, according to Neil Brazil, spokesman in London. Pascoe was traveling and could not be reached.

Chicago-based hedge fund giant Citadel Investment Group has hired Anand Parekh, managing director and head of Deutsche Bank's North America structuring group, which spans credit and interest-rate derivatives in New York. Officials familiar with the move are interpreting it as a signal that the USD8.5 billion fund is beefing up its structured credit presence, especially as it comes hot on the heels of Vladimir Finkelstein, derivatives researcher at Goldman Sachs, joining in a senior credit analytics position. Institutional Investor magazine's 2003 hedge fund rankings put Citadel as the third largest hedge fund in the world.

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.