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  • Caisse d'Amortissement de la Dette Sociale, the French agency responsible for repaying social security debt, has converted a seven-year USD100 million medium-term note into a euro-dominated liability. Christophe Frankel, cfo, said the company chose to issue this bond in dollars due to investor demand for debt dominated in this currency. It then carried out the swap since all its liabilities are euro-denominated.
  • Asset managers are looking into structuring capital guaranteed products with credit derivatives and collateralized debt obligations--rather than zero-coupon bonds--to leave more capital available to purchase options, offering investors more upside participation. Andrew Irvine, head of structured investment products at Investec Financial Products, said it is considering producing such a product.
  • Elliot Management, a New York-based hedge fund manager with USD3 billion in assets, has hired Steve Kasoff, high-yield collateralized debt obligation staffer at Deutsche Bank in New York, to set up a structured credit trading operation. The trading is likely to be done through its Elliot Associates hedge fund, according to officials familiar with the move. Kasoff declined comment.
  • JPMorgan has hired Wolfgang Schubert, a credit derivatives staffer at Goldman Sachs in New York, as v.p. in structuring collateralized debt obligation transactions. Schubert reports to Thomas Majewski, v.p. in in the same group, according to Michael Dorfsman, spokesman in New York. Majewski did not respond to messages and Schubert declined comment.
  • BNP Paribas and Deutsche Bank have started marketing hybrid notes in Taiwan's nascent onshore credit market and the race is on to complete the first transaction. The notes will give investors exposure to both the credit derivatives and interest rate market. C.G. Lai, head of fixed income at BNP in Taipei, said credit-linked structures are a natural extension of the growing interest-rate product market.
  • Hong Kong Exchanges and Clearing (HKEx) recently announced that a new type of product, Capital Protected Instruments (CPIs), is eligible for listing on The Stock Exchange of Hong Kong (SEHK). The CPIs provide a certain level of guaranteed return for investors and are regarded as structured products for the purpose of the Listing Rules of the SEHK. In order to list CPIs on the SEHK, issuers will need to comply with the listing requirements set out in Chapter 15A of the Listing Rules of the SEHK.
  • Singapore's United Overseas Bank is looking to join the fray of foreign houses setting up trading desks for Korea's onshore interest derivatives market. Yang Tay Ho, v.p. in Seoul, said it will likely hire one or two traders locally for the effort, but declined further comment.
  • Société Générale Asia recently hired Sonia Lee, Asian credit derivatives trader at Credit Lyonnais in Hong Kong, in a similar role in Hong Kong trading ex-Japan Asia credit derivatives. Lee confirmed the move but declined further comment.
  • "They're becoming a lot less attractive."--Nicholas Cohen-Addad, head of equity derivatives at Credit Lyonnais in Hong Kong, commenting on the effect of falling implied volatility on the Asian equity-linked note market. For complete story, click here.
  • The U.K.'sExport Credits Guarantee Department, a government agency responsible for facilitating and insuring British export companies, has entered its first credit-default swaps to hedge risk on loans in China and South Africa. The move follows the creation of an active portfolio management team, which was charged with putting the agency's portfolio in better shape, providing stability and developing a private market for export credit risks (DW, 2/3/02).
  • UBS and Credit Suisse First Boston will start making markets in the Trac-X index of credit-default swaps this week. Trac-X combines the credit derivative indices of Morgan Stanley and JPMorgan and compromises of 100 of the most liquid default swaps. BNP Paribas is also a market maker in the index. Kris Kagel, spokesman at UBS, and John Gallagher, spokesman at CSFB, confirmed the move.