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>> Structurers Look To Offer Plays Across Credit Instruments

Credit derivative structurers are expecting a flood of managed constant proportion debt obligations to hit the market as soon as they are given the green light from rating agencies.

JPMorgan in London has hired Adrian Valenzuela, head of alpha strategy at Merrill Lynch, in a similar role.

Merrill Lynch has lost four senior credit staffers from its Hong Kong desk, including George Sun, managing director in global structured credit products, and Sun Do Kim, a v.p. in the same team.

Merrill Lynch in London has hired a pair of senior equity derivative traders from Credit Suisse. Imran Lakha joins as an index trader, reporting to Mike Pringle, head of equity derivatives flow trading.

Morgan Stanley unit Cournot Capital is setting up Cournot Financial Products, a credit derivative product company.

Some in the loan-only credit-default swap market suggest the ability to place a credit option on LCDS will develop in 2007.

Nomura is building up its U.S. fund-linked derivatives business after hiring Andrew Scherr from Fortis Prime Fund Solutions earlier this month.

Delegates at last week's Information Management Network CDOs & Credit Derivatives conference in New York were tipping collateralized debt obligations referencing a variety of credit securities to gain favor, as fund managers look to play the relative value.

Scotia Capital in Singapore has hired Hiroshi Fujita, managing director in capital markets at Chinatrust Commercial Bank in Tokyo, as head of structured credit marketing for Japan.

Trading in the tranched ABX index was more orderly last week, following the publication of the first week's closing prices by Markit Group.

Promoters of the tranched ABX index TABX are looking for ways to inject pricing stability by bringing in natural buy-and-hold investors.