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Residential mortgage securitizations amortize at different rates, which makes hedging the interest rate risk a complicated task. This article examines what happens if the swap is terminated early.

Bruce Steinberg, managing director in credit derivatives sales at Credit Suisse First Boston in New York, has crossed the river to work for RBS Greenwich Capital's collateralized debt obligation group. Steinberg could not be reached.

Brown-Forman, a diversified producer and marketer of brand-name drinks including Jack Daniel's, Southern Comfort and Fetzer Wines, has entered a foreign exchange collar to hedge GBP3 million (USD5 million) of sterling sales. Roger Shannon, assistant treasurer in Louisville, Ky., said the corporate regularly enters collars on foreign currencies and sterling is one of its largest exposures because of U.K. sales. The size and number of trades varies according to sales patterns with sales generally picking up in the run up to Christmas, he noted.

Credit-default-swaps with two credit-event triggers started trading in Japan last week, a move which is being pushed by domestic sellers of protection and local houses such as Nomura Securities and Bank of Tokyo-Mitsubishi. These contracts can only be triggered if the reference entity goes bankrupt or fails to pay an obligation, the so-called soft credit event of restructuring does not apply. "Most investors prefer two credit events," said a trader at Nomura, noting that last Monday the domestic houses began quoting trades in the contracts.

Robert Canning, managing director and senior credit derivatives marketer responsible for U.S. agencies at Bear Stearns in New York, has joined UBS in Stamford, Conn., as an executive director in derivatives sales. Jon Bass, managing director and head of U.S. fixed income distribution, to whom Canning reports, did not return calls. Canning could not be reached and Kris Kagel, spokesman in Stamford, declined comment.

Mark Opila, director in interest rate derivatives marketing at Dresdner Kleinwort Wasserstein in New York, has joined Barclays Capital as a director in asset-backed securities sales. Opila declined comment.

Bank One's commitment to a 12-year sponsorship of the Chicago Bears may sidestep the curse of stadium naming rights, but the multi-million dollar deal has certainly opened up a few possibilities for jokes. One respondent to the Chicago Sun Times asked: "If the Bears give up a rushing touchdown does that mean there has been a run on the bank?"

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.

Investment managers switching to liability benchmarks will have to turn to interest rate swaps, rather than long-dated bonds, to achieve the desired long tenors, according toDonald Brydon, chairman of AXA Investment Managers. Speaking at Euromoney's 12th Global Borrowers & Investors Forum in London last week, he said these skills are typically associated with the life assurance industry.