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Threadneedle Asset Management is likely to use interest rate and credit derivatives for its newly launched fixed-income hedge fund, called the Crescendo Credit Fund. Robert Stirling, head of fixed income at Threadneedle in London, and lead portfolio manager for the fund, said it has the capacity to use any type of over-the-counter derivative. Specifically, it is likely to use interest rate swaps to manage the fund's overall interest rate curve exposure and would also use credit default swaps to hedge credit risk and may use them to take positions.

SwapsWire, a company that provides trade capture and confirmation for interest rate swaps, plans to expand the range of products it can process to include credit-default swaps and equity derivatives. The move could dramatically reduce the number of trades with errors, such as the wrong reference entity, and therefore reduce operational risk, according to traders.

Newly minted alternative investment manager Ash Capital envisages buying and selling over-the-counter equity options in its soon to be launched Empyrean Fund, a long/short equity hedge fund employing quantitative and fundamental analysis strategies. Rauf Ashraf, managing director in Boston, said the firm will buy and sell calls and puts on an opportunistic basis. The fund, which will launch with seed capital of USD25USD35 million, will invest across industries, he noted.

Oh Loan-eo, Loan-eo, Wherefore art though Loan-eo ... A Banc of America Securities loan analyst got a little carried away with Shakespearean references, with this phrase just one of many puns which included--Much Ado About Nothing, As You Like It, CP or Not CP and Measure By Measure--in a recent report on the market. According to sources, almost the whole of the loan group did not want this theme, but after a fight, Loan-eo was authorized. The only surprise from all this thespian fare is why the most pertinent quote was left out. "Neither a borrower nor a lender be."

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.

CDC IXIS Capital Markets North America has lured a 31-staffer strong securitization team from CIBC World Markets as part of its push into the U.S. securitization market. Ken Wormser, managing director and head of the asset securitization group at CIBC, is leading the charge, and will report to Ramine Rouhani, head of the capital markets group at CDC, in New York, according to an official familiar with the situation. Neither Wormser nor Rouhani returned calls.

Barclays Capital has hired Michael Wheeler, an investment grade credit trader from Deutsche Bank in New York, for a similar position. At Barclays, Wheeler will report to his former boss Mark Jicka, managing director and head of credit trading, who joined from Deutsche Bank late last year, where he had headed up investment grade credit trading, said an official familiar with the situation. Jicka declined comment. Wheeler could not be reached.

Barclays Capital has hired Steve Kelleher, foreign exchange sales to institutional clients at Bank of America in London, and Jonathan Pollock, director of institutional fx sales at Credit Suisse First Boston in London. Both will report to Roddy Boulton, head of European fx sales, and will market fx products to institutions, according to individuals familiar with the situation. Boulton was on holiday and could not be reached. A spokeswoman did not return calls.

Banc of America Securities has hired Edward Mirsepahi, senior equity derivatives marketer at Commerzbank Securities in New York, as a principal in equity derivatives marketing to financial institutions. Officials familiar with BofA said the hire reflects a move by the derivatives giant to take advantage of adverse market conditions by nabbing experienced derivatives staffers from rival firms. Mirsepahi was among a round of recent Commerz layoffs (DW, 2/23), noted one insider. He will focus on marketing structured derivatives, according to Jennifer DiClerico, spokeswoman in New York.

Banc of America Securities is preparing the European debut of its synthetic collateralized loan obligation product, SERVES (Structured Enhanced Return Vehicle). SERVES is referenced to a portfolio of high-yield loans, which is then leveraged via a total-return swap, according to firm officials. The details of the European launch are still being ironed out, noted the officials, declining to elaborate. Officials familiar with BofA expect the European offering to be referenced to European high-yield names.

Brascan Corp., a Toronto-based holding firm with interests in commercial properties, financial services and power plants, has executed an interest rate swap to convert a recent USD200 million fixed-rate bond into a synthetic floating-rate liability. Brian Lawson, cfo, said the firm enters swaps in order to keep a balanced book. It does, however, keep a modest amount of floating rate exposure in order to take advantage of the shape of the curve, he explained.

The price of one-month euro/dollar options spiked to 10.4% Wednesday, 0.6% higher than two days previously and up from 9.6% where it sat the previous week. The hike came on the back of a dramatic appreciation in the euro, which saw the dollar dive to USD1.10 against the single European currency, down from USD1.08 the week before. The sudden move caught the market slightly off guard as euro/dollar was trading in a tight range during February, the trader noted.