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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.

ABN AMRO is creating a group to build a retail distribution network for structured derivatives products to the whole of Europe. The firm has hired Henrik Takkenberg, head of public distribution for the covered warrant effort to Belgium, the Netherlands, Spain and Sweden at Commerzbank Securities in London, to establish the desk in London.

Cheyne Capital Management plans to set up an asset-backed securities desk that will issue cash and synthetic collateralized debt obligations and has hired Abbey National Treasury Services credit veterans Adrian Mallinson, structurer, and Syd Hanna, marketer, to spearhead the effort. Cheyne Capital is already one of the largest CDO managers and runs five CDOs totaling around USD8.5 billion. Officials at Cheyne declined comment.

U.S. accounting regulations often fail to adequately account for the assets and liabilities of corporates due to their failure to differentiate between actual and contingent assets and liabilities. David Shimko, president of Risk Capital Management Partners and senior lecturer at Harvard Business School, said that accounting requirements for corporates to mark assets and liabilities to market have often failed to demonstrate real corporate risks by failing to incorporate their contingent liabilities.

Commerzbank Securities is continuing to suffer departures from its New York and London offices, Simon Clowes, global head of proprietary trading, being the most recent high-profile loss. The resignations stem from disappointment with bonus payouts as well as general concerns over the direction of the firm, according to officials familiar with the moves. Neil Brazil, spokesman for Commerzbank Securities in London, confirmed the move, but declined comment on the reason for the departure.

Pengrowth Corp., a Calgary, Alberta-based oil and gas producer, has entered several forwards to hedge its oil price exposure and will likely enter more at year-end. Dan Belot, manager in investor relations, said the corporate has hedged 55% of this year's oil contracts, factoring in an average price of USD27 per barrel. Pengrowth has further offset risk for 30% of next year's oil contracts, and may increase this percentage, he said. Several forward contracts currently in place, which have an average lifespan of one year, are also set to expire at year-end and it is likely that the oil firm will renew some of these, he added. New York's benchmark light sweet crude contract for July was trading at USD30.67 a barrel on Wednesday.

Commonwealth Bank of Australia last week was in the final stages of completing an AUD159.2 million (USD105.6 million) repackaged synthetic collateralized debt obligation, the first multi-tranche deal of its kind in Australia. "This provides an opportunity for Australian investors to diversify while picking up some yield," said Rob Nankivell, head of structured securities in Sydney.

ConocoPhillips, the third largest integrated energy company in the U.S. with global annual revenues of over USD57 billion, anticipates purchasing credit derivatives for the first time to offset counterparty exposure. The firm is setting up a proprietary credit risk model that will factor in credit derivatives hedges in preparation for the move, said an official in Houston. The firm is already an active user of commodity and interest-rate derivatives for risk management purposes, he added.