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Five-year credit-default swap spreads on Sprint moved in Wednesday as word circulated that the telecommunications giant plans to make tender offers for some of its debt. Credit protection on the name tightened to 140 basis points last Wednesday afternoon, 10bps tighter on the day and 40bps tighter on the week with Sprint swaps having exchanged hands at 100bps the week before, according to a trader in New York.

Crédit Agricole Indosuez last week completed a USD50 million single tranche structured mezzanine note, believed to be one of the first sold in the mainland. "There's been lots of potential for CDOs in all of Asia--it's only natural that customers in China also follow the trend," said Pierre Trecourt, Asian head of credit derivatives structuring at CAI in Hong Kong.

"The number of circumstances where you can take front end profit will be very limited."-- Wayne Upton, research director at International Accounting Standards Board in London, commenting on the proposed accounting rule change. For complete story, click here.

Derivatives desks were snapping up Swiss francs in the spot and options market to cover option positions they had executed over the last month. "The market was caught with its pants down," said Lars Ahlgreen, senior foreign exchange trader at Crédit Agricole Indosuez in London, explaining that most traders were short the Swiss franc. Over the last several weeks traders had been executing one-touch barrier options with strikes between CHF1.58-1.60.

In this article we introduce the construction process of Fubon Group's first managed CDO, Silk Road 2003-1. The first step was to build a reference pool of 50 credit-default swaps using our selection criteria. We then determined the size of each tranche, given the rating and spread of LIBOR, using Moody's Investors Service Binomial Expansion Technique. The final stage was to explore the effect of the diversity score on the funded size of the synthetic CDO and look at the subordination of debt tranches under different diversity score scenarios.

Swift Energy, a Houston-based oil and gas producer, has purchased collars and floors as a means of hedging price risk in its oil and gas operations and is planning further purchases. Scott Espenshade, director in investor relations, said the energy company regularly enters derivatives transactions as a means of protecting its capital with maturities normally extending to a year.

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.