Search results for

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.

Three of ABN AMRO's derivatives marketing team in Seoul have joined rivals. Jake Koh, head of derivative sales, has jumped to Goldman Sachs in Hong Kong, while Tan Kang, derivatives marketer, has joined Credit Suisse First Boston, and Jae Kwung Lee, has gone to Samsung Investment Trust Management Co. The trio reported to S.H. Baek, treasurer in Seoul, who did not return calls. Li Koon, spokeswoman at ABN, declined comment.

American Electric Power is evaluating entering a total return swap for the first time and has purchased USD30-40 million (notional) of credit-default protection on one of its counterparties. Total return swaps could be used as a hedging tool when credit derivatives are not available on certain corporates, for example for names which are not liquid, noted an official at the firm in Columbus, Ohio. A total return swap would function similarly to a credit-default swap, by synthetically shorting a bond, with AEP paying the return on the bond and receiving LIBOR plus or minus a spread.

Synthetic collateralized debt obligations referenced to asset-backed securities have recently arrived in Asia and several firms, including JPMorgan and BNP Paribas, are scrambling to close deals. "With spreads tight, investors have no choice but to think about new products," said Mahesh Bulchandani, managing director and head of structured credit products at JPMorgan in Tokyo. Bulchandani continued that the firm is hoping to complete the first synthetic CDO that combines both Japanese and Asian ABS underlying. The deal would likely be over USD500 million.

Government-owned South Australian Asset Management Corp, which manages and realizes around AUD6 billion (USD3.78 billion) of assets and liabilities for the state, is looking to tap the interest rate swap market to convert several planned debt issues. Bruno Bellon, portfolio manager in Adelaide, said SAAMC will issue more than AUD25-50 million in the coming months because several of its outstanding bonds are set to mature. The corporate's fixed income portfolio is approximately AUD3.5 billion.

Tim Youssef, former director in equity derivatives trading at Credit Lyonnais Securities in New York, has resurfaced at institutional broker Burlington Capital Markets, as a managing director and co-head of equity derivatives. Paul Basile, who co-heads the desk with Youssef, said the loss of trust by many clients of the bulge brackets research teams means the deciding factors for executing trades have shifted toward execution and price. This has leveled the playing field for firms such as Burlington, according to Basile.

Citigroup has hired Colin Sharpe, head of credit structuring at the Commonwealth Bank of Australia in Sydney, to head its exotics and cross-markets trading team in Singapore. The move is part of Citigroup's restructuring of its Asia-Pacific foreign exchange, debt and interest rate desks, according to Tom Pragastis, regional head of trading at Citigroup in Singapore, and to whom Sharpe reports.

Ashwin Kumar, head of interest rate trading at Commerzbank Securities in New York, is joining Banc of America Securities in London, reportedly in a similar role. The move is the latest in a stampede of staffers exiting Commerzbank, many of which have reportedly been initiated by low bonus payouts (DW, 5/5). Ali Satrap, global head of interest rate trading at Commerzbank in London, to whom Kumar reported, said that Kumar's move was not motivated by dissatisfaction at Commerzbank, but instead by the appeal of the new opportunity at BofA. Liz Wood, spokeswoman at BofA, was not able to comment by press time.

Crédit Agricole Indosuez plans to start stripping convertible bonds and hire credit derivatives professionals as part of its effort to boost its Japanese desk. The firm is looking to hire a senior trader and a marketer in the coming weeks, according to Loïc Fery, global head of credit derivatives and structures in London. The move follows an increase in exotic trades, such as CDOs and baskets, which means the trading book needs to be more actively managed. The firm is already one of the largest convertible bond strippers in London and recently started structuring the first synthetic collateralized debt obligation referenced to convertibles to lay off some of the risk (DW, 3/30).