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State Street Research and Management, a Boston-based asset manager with USD40 billion under management, recently entered into credit default swaps as a means of managing so-called "vintage risk" in a true sale collateralized debt obligation it recently brought to market. Since the secondary market in asset-backed securities is relatively illiquid, issuers of CDOs of ABS have to purchase ABS in the primary market and as a result the reference pool consists entirely of securities of the same vintage, explained Ron D'Vari, managing director and head of specialty products and structured finance in Boston.

Taiwan Cement Corp., Taiwan's largest cement maker with total assets over TWD98 billion (USD2.8 billion), is considering entering interest rate swaps in anticipation of rate increases next year. "We want to take advantage of low rates in case they go up sharply," said S.C. Hwang, specialist in the finance department in Taipei. He noted that the company could hedge up to 40% of its TWD20 billion outstanding floating-rate debt via five-year interest rate swaps by the second quarter of next year. It is now looking at such transactions because it believes the interest rate cycle is now pointing to higher rates. "They've reached the bottom," he continued.

UBS has hired Ron Goldshmidt, a Latin American trading head at TD Securities in Toronto, in the new position of director, heading up Latin American trading in Stamford, Conn. The move is part of UBS' efforts to expand its global emerging market business, according to Kris Kagel, spokesman in New York. In his new role Goldshmidt will be responsible for bonds and derivatives, such as convertible currency swaps, with his initial focus being on Mexico. Goldshmidt could not be reached.

Egg Banking, a U.K. Internet bank, has entered into a foreign exchange swap to convert its first eurodollar USD350 million three-year note into a sterling-denominated liability. Ian Haywood, head of corporate treasury in London, said it had issued a dollar-denominated note in Europe because it attracted a wider investor base. Haywood declined all further comment on the details of the swap.

Brixton plc, a U.K. commercial property developer and investor, has entered into an interest-rate swap to convert a recent GBP150 million (USD254 million) 16-year bond into a floating-rate liability. Steven Owen, deputy chief executive in London, said it elected to pay floating in the swap because six-month LIBOR is currently around 4%, which is significantly lower than the fixed coupon of the bond.

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.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.