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Owens Corning's bank debt slipped into the 60-62 range from the 65 level after the company filed its third amended joint plan of reorganization. The new plan does not provide a proposed settlement value to bank debt lenders for their claims to certain subsidiary guarantees.

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.

BNP Paribas has come up with various hedging strategies for corporates wanting to hedge their interest rate exposure without suffering from the volatility swings that the new accounting rules could trigger. Melissa Allen, a structurer in the global risk solutions group in London, said that because International Accounting Standard 39 is rules based, rather than principles based, how the derivatives are structured is critical to whether they will qualify for hedge accounting.

BOCI-Prudential Asset Management is looking to invest in collateralized debt obligations and credit-default swaps for the first time, according to DW sister publication Global Money Management. Lionel Kwok, cio of the USD2.3 billion asset manager, said, "We have used MBS, TIPS and other structured interest rate products in the past and I am looking into extending the product range to CDOs and CDSs or other derivatives."

Bank of America has drafted in Greg Mulligan, head of market risk-Europe in London, to replace Rick Grove as global head of commodity derivatives in New York, according to DW sister publication Power Finance & Risk. Grove has taken the new position of coo of the group, according to an official familiar with the firm. Mulligan was travelling at press time. Grove said in addition to risk management, Mulligan has extensive derivatives trading experience.

Banc of America Securities is readyiny on a USD1 billion CDO of CDOs, dubbed Vertical Capital, in which it enters a total-return swap to transfer the risk. In the swap BofA pays the earnings from the USD1 billion CDO pool and receives a LIBOR-based premium, according to an official familiar with the structure.

San Jose, Calif.-based Calpine has incorporated a spark spread hedge into a power plant refinancing package, a feature that ensures debt interest will be paid even if generation margins deteriorate for the gas-fired generation portfolio. Bankers said the power plant financing is likely the first of its kind to strip out commodity price risk through the use of a spark spread floor. The spark spread is the difference between the price of gas and electricity.

Chicago-based hedge fund Citadel Investment Group has hired Anand Parekh, managing director and head of Deutsche Bank's North America structuring group, which spans credit and interest-rate derivatives in New York. Officials familiar with the move are interpreting it as a signal that the USD8.5 billion fund is beefing up its structured credit presence, especially as it comes hot on the heels of Vladimir Finkelstein, derivatives researcher at Goldman Sachs, joining in a senior credit analytics position. Institutional Investor magazine's 2003 hedge fund ranking puts Citadel as the third largest hedge fund in the world.

Citigroup has priced the notes for a TCW Group managed collateralized loan obligation that is comprised entirely of pro rata loans. The USD500 million TCW Pro Rata I deal will synthetically invest in an actively managed reference portfolio of 75-100 revolver and "A" term loans. The deal is said to be the first of its type to exclusively invest in this form of loan which has in recent years been shunned by banks and institutional investors due to poor returns and the complications of funding revolvers.