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Credit-default swap spreads on DaimlerChrysler widened about 10 basis points last week as traded volumes in the name doubled. One trader said talk of a EUR300 million (USD349 million) bond issue could have been responsible for pushing spreads out to 112bps for mid-market protection Thursday from around 100bps the previous week. There was a general blow out in auto names, which could have been caused by investors buying protection as spreads have been historically tight over recent weeks. Trading volumes rose to USD20 million per day from a typical USD10 million, noted a trader.

ISDA has set June 20 as the start date for implementation of the 2003 credit derivatives definitions. This is also the quarterly roll date for standard credit-default swaps. The definitions, originally called the 2002 credit derivatives definitions, were scheduled to start being used in March, that was then moved to May and now it is the end of June. Traders and lawyers expect the market to meet the June 20 date.

The International Commercial Bank of China, with assets totaling over TWD906 billion (USD26 billion), plans to invest in credit derivative products including synthetic collateralized debt obligations for the first time before year end. "There's a lot of ideas going around," said Angela Chen, manager of the treasury department in Taipei, adding that she has been shown several credit derivative instruments by the sell side.

Bradford & Bingley has entered a cross-currency swap on a recent floating-rate USD300 million bond offering to convert it into a synthetic sterling-denominated liability. Paul Rixon, investment and derivatives manager in Bingley, U.K., said the thrift issued the obligation in dollars because there was demand from European and Asian-based investors for dollar-denominated debt, but needed to convert the offering into sterling because that is its operating currency. "We can issue in any currency that suits," Rixon said, adding that it is the firm's policy to convert any proceeds into sterling.

"We want to get a better understanding of the risks we are facing. The next stage is then to manage those risks."--Maarten Verway, head of the export credit insurance and investment guarantee division at the ministerie van Financiën in the Haag, explaining why it is looking at derivatives. For complete story, click here.

International Asset Transactions (IAT), a New York-based independent firm specializing in the securitization and trading of illiquid securities, is readying its first conduit, a USD12.5 billion structure that will invest in asset-backed securities and medium-term notes and will use over-the-counter credit, fixed income and foreign exchange derivatives. Gus Udo, president and ceo in New York, said the structure, dubbed SuperLumina, is being forged to benefit from recent regulatory and accounting changes, including Financial Interpretations accounting rule 46, known as Fin 46. A Fitch Ratings report predicts that a consequence of Fin 46, as well as the impending Basel 2 accord, will be a reduction in bank-sponsored conduits referencing asset-backed commercial paper and this presents opportunities for established, independent firms to step into the void, he noted. It is called SuperLumina because it aims to shed light on assets that are normally ignored.

The firm has hired Denis McCarthy, head of listed futures & options, portfolio trading, transitions and head of structured products & hedge fund sales at Morgan Stanley in Hong Kong, for a new role as head of equity institutional derivatives in Asia. Jason Good, head of equity institutional derivatives, said this is part of the firm's push to extend its franchise to Asia.

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.