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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.

The new European market standard for restructuring underwent emergency surgery last week after traders realized it would not work for subordinated insurance companies. The definition restricts the maturity of bonds that can be delivered in the event of a default, which excludes most debt issued by insurance companies. This makes the protection worthless because if the buyer cannot deliver an asset they cannot make a claim on the default swap.

The International Swaps and Derivatives Association was forced last week to send out a hasty retraction after its Tokyo office sent members an e-mail penned by JPMorgan that apparently signaled an about face on proposed credit derivatives documentation. The original e-mail, sent last Tuesday, infuriated traders in London and New York, who saw it as an attempt to sneak through the back door changes to a document that has been the subject of intense debate for the past year. Officials at ISDA and JPMorgan declined comment or did not return calls.

Lehman Brothers is setting up an emerging markets coverage group specializing in derivatives-based structured products and has lured Rajeev Tewari, managing director in the emerging market coverage group at Credit Suisse First Boston in New York, to head the venture. The desk will initially focus on Latin America. The new desk will structure and market fixed income derivatives including hybrid interest rate, credit and foreign exchange products for clients such as corporates, said officials familiar with Lehman's plans. Tewari and Kerrie Cohen, spokeswoman in New York, declined comment.

A team of six structuring and asset management professionals from the recently folded Westmoreland Capital Management are in talks with investment banks, boutiques and fund of fund managers to capitalize a new structuring and asset management venture. Jim Keegan, former head of asset management and cio at Westmoreland in New York, said the management team has strong asset management and structuring expertise and will apply this to develop and manage a wide array of products, including synthetic collateralized debt obligations. The team is considering several options including entering a joint venture, working as a subsidiary, or even joining a firm as employees, he said.

Goldman Sachs has reorganized its Asian derivatives effort in Hong Kong, integrating cash and equity derivatives trading and establishing a multiple asset-class structuring group. David Voon, managing director and head of equity derivatives in Hong Kong, said he and Tom Morrow, head of Asian shares in Hong Kong, will be co-head the newly minted equity products group. Morrow, who had run the cash equity sales group, declined comment. "Whether they're trading cash products or derivatives, clients see us as one firm--not different departments," said Voon.

Macquarie Equities (Asia) has kicked off its marketing effort for a share accumulating equity-linked note in Hong Kong. "It's a very suitable product for the current market environment as investors are becoming cautiously optimistic," said Matthew Long, head of equity derivatives sales in Hong Kong. The note, dubbed KODA, for Knock-out Discount Accumulation, is referenced to domestic or U.S. shares and allows clients to buy shares below their spot price.

Greg Tell, director and head of exotic credit derivatives trading at Merrill Lynch in New York, is moving to Citigroup Global Markets. He will be taking a newly created role, according to one firm insider.

"I'm moving to Hawaii."--Jim Clark, Japanese head of equity trading at UBS in Tokyo, commenting on what he will do in retirement. For complete story, click here.