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The euro/dollar risk reversal moved further in favor of euro calls as investors snapped up volatility. Six-month 25-delta risk reversals jumped to 0.78 vol Thursday from 0.55 vol on Monday as one investor bought a USD250 million euro call/dollar put struck at USD1.13 and sold a USD250 million euro put/dollar call at USD1.0250. The trade was executed when spot was at USD1.08 at a price of 0.6 vol. A similar trade was executed later in two USD350 million legs at a vol of 0.7750. In this trade, the investor bought a euro call/dollar put struck at USD1.15 and sold a euro put/dollar call struck at USD1.

UBS Warburg has hired Reinhardt Olsen, head of the institutional services group for international clients at Merrill Lynch, as an executive director and client relationship director for its fixed income, rates and currency group in New York, a newly created position that includes derivatives. Terrence Keeley, managing director for North American client relations at UBS, said Olsen, who reports into him, is experienced and well known in the fixed income universe, having worked in a variety of senior roles. Olsen, who declined comment, was previously head of high grade corporate banking at Merrill and has also worked as head of the U.S. debt market and integrated bank business at the firm. At UBS Olsen will focus on depositary institutions, said Kris Kagel, spokesman in New York.

Armajaro Securities, a structured products boutique, is seeking derivatives sales professionals to net more business from institutional clients increasing use of fixed income and equity products. Helmut Kleinschrod, head of trading in London, said the firm already has an adequate structuring team in place, but is looking to add up to three sales professionals who have well-established institutional clients. "We need sales people because we need clients, because that's where the capital is," Kleinschrod said.

Mandalay Resort Group, a casino resort operator, has entered two interest rate swaps, totaling USD475 million and maturing in December 2005 and in February 2006, which take the view that interest rates will not rise as rapidly as the curve is predicting in the short-term. Les Martin, v.p. and chief accounting officer in Las Vegas, said the fixed-to-floating swaps were tied to debt issues for accounting regulation reasons.

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.

Citigroup is slated to shop an $875 million deal backing Pharma Services Holding's cash buyout of pharmaceutical research and marketing firm Quintiles Transnational Corp. for $1.7 billion next month. The deal would pile on bank debt for a company that currently has very little debt, noted David Lugg, analyst for Standard & Poor's. A banker noted that the potential surge in debt multiples--from one time to 4.7 times--would be an important point to consider while looking at the credit. Structure and pricing for the deal is still to be determined, according to bankers. A spokeswoman for Quintiles noted the entire transaction should close in the third quarter. The credit will fund the acquisition along with $415.7 million in equity from One Equity Partners--the private equity arm of Bank One--and $586 million of Quintiles cash. One Equity Partners co-founded Pharma Services with Quintiles' founder Dennis Gillings.

Is Michael Weir, Morgan Stanley's par loan trader, leading a double life? Well, not really, but the market took to haggling him this week about his Masters Tournament-winning name sake. "This is an unbelievable feeling, a thrill. I'm having a tough time putting it into words. I probably couldn't do it justice," said trader Weir, echoing the words of the pro golfer.

Speculation that Xerox Corp. is staking out some type of debt refinancing has pushed the bank debt about two points higher over the last couple of weeks. "The company has stated that it will be opportunistic about accessing the capital markets," said one analyst. The current buzz anticipates that a new debt package will likely consist of new bonds and a bank debt refinancing. As LMW went to press last Thursday, the market for Xerox's revolver was quoted in the 94 1/2 context, its "A" piece was in the 97 97 1/2 range, and the "B" loan was quoted as high as the 99 level. J.P. Morgan and Bank One lead the bank deal that was revamped last June.

Owens-Illinois is working up a $2.1 billion refinancing credit that is set to emerge in the near future as the company seeks to tackle a maturing $2.45 billion debt load. The exact date of the deal's launch could not be confirmed, but bankers said it is anticipated very soon. Deutsche Bank, Bank of America, Scotia Capital, Citigroup and Bank One are the expected leads on the deal. The expected structure should shape up as a $600 million "B" loan with price talk in the LIBOR plus 31/2-4% range, a $750 million "A" piece in the LIBOR plus 3-31/2% range, and a $750 million revolver ranging from LIBOR plus 21/2-3%. A banker familiar with the deal said the structure and terms are not yet final.

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.