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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.

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.

Crédit Agricole Indosuez is structuring a USD660 million synthetic collateralized debt obligation referenced to AAA rated asset-backed securities. The deal, dubbed ABSolute, is expected to be launched in the coming weeks, according to officials familiar with the deal. Structurers at CAI declined comment.

Andrew Kresse, principal in structured credit products at Banc of America Securities in New York, has jumped to Barclays Capital for a similar role. At BofA, Kresse headed the sales activity of structured products to financial institutions. In his new role Kresse will head all structured credit sales, according to officials.

Credit-linked note issuers using default swaps to hedge credit exposure will be exposed to significant basis risk under the International Swaps and Derivatives Associations' proposed 2003 credit derivatives definitions, which are due to be implemented May 6, according to lawyers. Some European dealers have asked ISDA to amend the definitions, but an official at the trade association said there is no intention to issue an amendment on this point, adding the definitions were discussed at length and had support up to their publication. Credit-linked notes account for around 8% of the credit derivatives market, according to the British Bankers' Association (DW, 9/22).

Deutsche Bank is on the hunt for the first hybrid credit derivatives trader to sit within its North American Structuring Group, which develops structured interest-rate products for clients. Jon Kinol, managing director and head of OTC trading for North America in New York, said that by building a hybrid structuring expertise within the group, the firm will be able to offer clients structures that benefit from different correlations between the two asset classes.

JPMorgan has hired Yanghui Wang, quantitative analyst at Lord Abbott, as v.p. covering market risk for equity derivatives in North America in New York. Bob Henderson, who had previously filled the role, has taken on responsibilities as head of foreign exchange and commodities derivatives research. The move was initiaited by Henderson's desire to step back into the FX arena, said an official familiar with the change.

An International Swaps and Derivatives Association survey showed around 70% of the 20 major credit derivatives participants in Japan were in favor of dropping restructuring as a credit event from credit derivatives documentation, but dealers are unlikely to cut the clause. "Even though they voted for this it's unlikely it will happen anytime soon--they voted for modified restructuring as well and that died after a week," said one credit trader. Dealers attempted to introduce the modified restructuring credit event in October 2001 but failed due to a lack of end user interest (DW, 10/21/01).