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The Florida Municipal Power Agency has entered several interest-rate swaps and was set to tap the bond market last week with a USD245 million multi-tranche offering of floating-rate revenue bonds to pay down existing debt and slash its interest burden. A spokesman in Orlando says the agency hopes to cut its funding bill by some USD5 million annually by refinancing USD250 million of bonds with average coupons of roughly 5%.

Fukoku Mutual Life Insurance Co. is planning to use credit-default swaps for the first time to hedge a portion of its USD5 billion fixed-income portfolio. "These can be used to hedge our bond portfolio," said Ichiro Yamada, manager of the international finance department in Tokyo. He continued that the insurer is currently studying the products with a number of investment banks and would look to buy default protection as a way to hedge credit risk on global bonds. Yamada said it would, "Hopefully [take the plunge] in six months but likely within 12."

JPMorgan is planning to create index products based on specific sectors within the Standard & Poor's American depository receipt index. The firm already offers investors products based on the entire ADR index, said Jerry Hanweck, equity derivatives strategist in New York. JPMorgan is waiting for S&P to begin publishing pricing for sector-specific indices and then will launch over-the-counter derivatives products, including total-return swaps and options. Eventually, JPMorgan will look to launch exchange-traded funds on the index and individual sectors.

JPMorgan has hired William Measday, associate director at Macquarie Bank in Sydney, as v.p. of credit structuring in Sydney. He is the firm's first onshore structurer to handle credit products, according to Mahesh Bulchandani, head of structured credit products in Tokyo. "This will provide a platform to grow our collateralized debt obligation business," said Bulchandani, noting that Measday will look over both repacked mortgage-backed securities as well as credit derivative products. Bulchandani noted that previously JPMorgan marketed credit products such as synthetic CDOs to Australian investors out of its Tokyo branch but added with the continued growth in interest it now made sense to hire someone. Measday now reports locally to Jason Lee, head of debt capital markets in Sydney, and product-wise to Bulchandani.

Credit Lyonnais is expanding its recently launched credit derivatives operation in Japan, according to Edward Willems, head of distribution and Japan head of credit derivatives in Tokyo, who is spearheading the effort.

The E.W. Scripps Co., a media outfit with interests in print, broadcast and new media, is looking to enter its debut interest-rate swap as a public company and its first in more than a decade, said John Wolfzorn, treasurer in Cincinnati. He said the company has entered interest-rate swaps in the past, but none since its initial public offering in 1988. He was unable to provide more information about the company's previous use of swaps.

Chip Stevens, v.p. at Merrill Lynch, has left the firm to relocate to the U.S. with another investment bank. Dale Lattanzio, managing director and head of the global principal investment ans secured financing group, said Stevens had left of his own accord and would be replaced, although it had not been determined whether the hire would be internal or external. Lattanzio would not elaborate on the firm Stevens had joined. Stevens had already left Merrill and could not be reached.

NCR Corp., a technology company with 2001 revenue of nearly USD6 billion, is considering entering its first interest-rate swap in more than 10 years. An official at the company in Dayton, Ohio said the Standard & Poor's 500 Index component is in discussions with various banks about entering a swap, in which it would convert a fixed-rate bond it sold recently into a floating-rate liability. It issued the seven-year USD300 million bond last month with a 7.125% coupon. Bank One Capital Markets and Salomon Smith Barney underwrote the transaction.

"The people that support us with their balance sheet will get a shot at this business first."-- Matt Hildreth, senior v.p. of finance at Fleming Companies in Lewisville, Texas, commenting on how it will allocate foreign exchange derivatives business. For complete story, click here.

Extendicare Health Services, an operator of more than 260 nursing homes in the U.S. and Canada, has entered an interest-rate swap with Lehman Brothers to convert an existing fixed-rate liability into floating-rate, said Mark Durishan, cfo in Milwaukee. Officials at Lehman declined comment.

BNP Paribas has changed the reporting line for its London-based European securitization research group so that it now reports to a banker--Ra Sharma, global head of structured credit syndicate, instead of to the head of credit strategy.

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.