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Derivatives professionals expect the equity derivatives markets in Korea and Taiwan to take off in the coming months on the back of regulators loosening restrictions on foreign institutions shorting stock in Taipei and anticipated changes in Seoul. Taiwan legalized borrowing shares for hedging late last month, with further changes expected early next year, and Korea will likely increase the amount foreign institutions can short.

Seoul-based Korea South-East Power Co., with over KRW2.941 trillion (USD2.47 billion) in assets, recently entered a cross-currency interest rate swap on the back of a USD150 million Eurobond offering. H.K. Lee, manager in the financing department, said the entire fixed rate issue was converted into won at a different fixed rate level, declining to comment on specific rates. The proceeds of the Eurobond, KOSEP's first, will go toward general corporate expenditures, explained Lee.

Canada's TD Securities has hired Kazuo Anzai, sales manager at Prudential Investment Management in Tokyo, in a new role as a marketer in the credit products group in Tokyo as part of its plans to boost its credit derivatives sales effort in the region. "2003 is the year of highly-structured products in Japan," said Katsumi Mizutani, head of structured credit derivatives in Tokyo. Mizutani explained that with the growing interest in Japanese institutions for credit derivatives, TD is looking to increase its distribution capabilities in Japan by adding two or three additional marketers this year. TD facilitates trading for Japan out of its London hub.

Central bank regulations that effectively closed down the Philippine foreign exchange derivatives market could be lifted in the coming months. The Bankers Association of the Philippines has been working with its members and Bangko Sentral ng Pilipinas to ease restrictions on the maturity of derivatives transactions. Mark Andaya, consultant at the association, predicted the regulations would be softened in the coming months.

Market smile gives information about the marginal distributions of the underlying. The information is enough to price all European products without any confusion. This includes for example call-spreads, risk reversals, strangles, parabola contracts, log contracts and so on.

White & Case has hired Heather Pilley, consultant at Linklaters in London, as a partner. Francis Fitzherbert-Brockholes, co-head of the capital markets group in London, said the firm hired Pilley to increase its depth in derivatives and support its collateralized debt obligation practice.

Yapi Kredi Bank (Nederland) is considering boosting its investments in credit-linked notes and is eyeing collateralized debt obligations for the first time. Orhan Altas, head of treasury, said the firm is waiting for spreads to widen before making the plunge, adding that it tested the product last year and is happy with the result. He estimated that the bank could invest 3-5% of the firm's USD350 million of assets. "It is a growing market. You can never close your eyes to this development," said Altas.

More and more bankers may be leaving the rough-and-tumble world of Wall Street, but few can match Alan Goehring's achievements since leaving Credit Suisse First Boston a couple of years ago. The one-time distressed debt securities analyst recently took home $1,011,886 in the championship event of the World Poker Tour to become the top player, according to Poker Mag, a Website for poker fans. Goehring, an aggressive player who wears sunglasses during games, says he does not care about making the money, just winning. He also noted that his work experience has helped him in poker because in the final analysis, both are about taking advantage of favorable risk-reward opportunities.

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.

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.