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Firms in the U.S., including Deutsche Bank, Lehman Brothers and JPMorgan, are developing synthetic collateralized debt obligations referenced to CDOs in a trend that is likely to double the size of the market, said officials at these firms. Increased volumes in the CDO secondary market as well as wide spreads, may be encouraging the move, according to David Schwartz, CDO researcher at Morgan Stanley in New York. Nik Khakee, director in structured finance at Standard & Poor's in New York, said S&P has traditionally rated around two such deals a year, but predicts that number may double this year.

Northern Rock, a U.K.-based lending and savings bank, entered a cross-currency swap on a recent EUR600 million (USD634.89 million) bond offering to convert it into a sterling-denominated floating-rate liability. Pete Horner, head of derivatives in Newcastle-Upon-Tyne, U.K., said the bank converts all of its fixed-rate debt into floating-rate and all non-sterling denominated issues into sterling to match its asset base. The maturity of the swap matches the maturity of the bond.

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.

Is that an exploded dye pack in your pants, or are you just happy to see me? A bank robbery suspect learned his lesson the hard way last week. Shortly after a National City Bank was robbed, John Gladney was spotted by the police walking strangely and in apparant pain about a block away from the bank. He had stuffed the money, which contained an explosive dye pack, down his pants and it exploded near his groin. He was captured and charged with aggravated robbery.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

More than $10 million of Kmart's three-year revolver was sold north of the 40 level last week in a mini-auction out of an original lender. The company's bank debt has been trading as the company nears its exit from bankruptcy. Although the reorganization plan will distribute 40 cents on the dollar to lenders for their exposure, dealers explained that the paper was able to trade higher than 40 because buyers receive net-backs for letters of credit. The three-year loan is trading at a 125 basis point premium to the 364-day revolver, which is changing hands in the 38 1/4 39 range.

Kmart's $2 billion exit financing credit will be launching to retail investors on April 3, keeping with the company's "fast-track" plans to emerge from Chapter 11 on or before April 30. The deal includes a $1.8 billion revolver and a $200 million "B" piece-- both priced at LIBOR plus 31/2%. A banker familiar with the GE Commercial Finance, Bank of America and Fleet Retail Finance-led facility said that the managing agent round, which began March 13, had exceeded expectations in commitment levels. Reportedly, agent commitment levels are near $1 billion. The asset-based deal is secured by inventory and will be used for ongoing capital needs after emergence. Calls to Fleet were not returned, while a B of A official and a GE spokesman declined to comment.