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Southern Power Co., the wholesale power subsidiary of Atlanta-based energy giant Southern Co., plans to unwind approximately eight forward starting swaps with a total notional size of around USD500 million when it prices a bond issue of approximately USD600 million that is planned for June. Mike Harreld, senior v.p. and treasurer at Southern Company Services, the power firm's service arm, explained that the swaps were entered into in increments over the last 18 months, with Southern paying a fixed rate and receiving a LIBOR-based floating rate. Harreld declined to specify the rates.

Standard Chartered is making a push into selling derivatives products in Africa and has appointed Jean-Michel D'Oultrement, treasurer for U.K. and Europe in London, to be the head of markets for Africa based in London. D'Oultrement replaces Peter McLean, who has been appointed as chief executive of Standard Chartered Zambia, McLean said. D'Oultrement was traveling and could not be reached.

WestLB Securities Pacific, the Tokyo-based arm of Germany's Westdeutsche Landesbank, has beefed up its derivatives operation with several hires and transfers. "We have made a number of strategic hires in conjunction with refocusing our business on core credit and derivatives markets," said Terence Mark, deputy head of sales in Tokyo. He added, "These are growth businesses in Japan."

Asian equity derivatives market veteran Nick Waltner plans to start using over-the-counter derivatives when his fledgling hedge fund, Kulshan Capital Management, reaches USD50 million in assets under management. The Seattle-based fund, which has USD5 million under management, is building up a track record in the U.S. cash equity market and will look at overseas markets such as Asia in the coming months, he said. Waltner, who established the fund last year (DW, 3/18), was previously responsible for setting up an Asian equity derivatives business for Bank of America in Tokyo and before that ran the equity derivatives desk at Nikko Salomon Smith Barney.

Segall, Bryant & Hamill is looking to assume additional risk in its portfolio, either by moving down in credit quality or by adding to its mortgage-backed holdings. Greg Hosbein, portfolio manager of $1.5 billion, says the firm will shift about $30 million out of higher quality corporate or agency paper into lower-rated corporates or mortgage pass throughs in order to pick up additional yield. Before making the trade, Hosbein wants to wait for further spread widening in the secondary market, which he believes will occur as war-related concerns gather momentum.

While trying to contact a CDO desk late last week, a Loan Market Week staffer was told, "They're all in Scottsdale, Arizona." To which the naïve staffer said, "Oh, at the Asset Securitzation Conference." The bemused person at the other end of the line, responded, "No, playing golf." Believing this was a joke, the reporter went onto the Web Site of the conference and noticed that The Eighth Annual ABS West golf tournament was in fact underway on the Links golf course at the Arizona Biltmore. Sessions had concluded by tee-off.

The Deal Roll-off Chart, provided by Capital DATA Loanware, lists the 50 largest leveraged credit facilities in the U.S. market that are due to mature twelve months from now. It is designed to provide a look at potentially available money in the market as credits are renewed or retired.

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.

BWD Rensburg Ltd. is selectively buying new triple-A rated corporate issues. John Anderson, a Leeds-based portfolio manager of £21 million in gilts and corporates, says he has been putting new money to work in new issues from the European Investment Bank, the Inter-American Development Bank and the World Bank. Anderson buys bonds with a minimum maturity of five years, because of the fund's investment mandate. BWD Rensburg manages £300 million in fixed-income assets.

Margo Cook, portfolio manager at BNY Asset Management, will rotate 5% of the firm's portfolio, or $250 million, from Treasuries into corporates. The firm will look at the geopolitical environment and initiate the move if Treasuries rally as an immediate response to a war with Iraq, which Cook says is likely to be the case. She says a trigger for the rotation would be if the 10-year Treasury yield fell to 3.5% from last Monday's 4%.

O'Charley's has completed a $300 million credit facility after an upward price flex and a structural shuffling of the deal. Wachovia Securities leads the credit, which at launch consisted of a $150 million "B" piece priced at LIBOR plus 31/ 2% and a $135 million revolver priced at LIBOR plus 21/ 4%. However, the six-year "B" was whittled down to $100 million and its spread increased to 4% over LIBOR. The four-year revolver was increased to $200 million and priced on a grid ranging from LIBOR plus 21/ 4-23 /4%. The current revolver rate is LIBOR plus 23/ 4%, said Chad Fitzhugh, cfo. He added that investor demand warranted the structural changes. "The revolver was well subscribed," he noted. Some bank lenders reportedly piled on in hopes of developing a relationship with the company.

Owens Corning bank debt has been sparking the market over the last week with more than $70 million in trades. The paper traded into the 70s, but bids had retreated to the high 60s when LMW went to press. The bank debt surged from the mid-60s as the market digested information regarding the discussion of asbestos liability limitations.