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Manitowoc, a Midwestern industrial manufacturer with annual revenue of roughly USD1.2 billion, is "strongly considering" entering its debut fixed-to-floating interest-rate swap, according to Carl Laurino, treasurer and interim cfo in Manitowoc, Wis. He said the company expects to take advantage of current rates and convert a fixed-rate, high-yield bond it sold earlier this month into a synthetic floater. Converting the USD175 million deal would be the first time it has switched from fixed into floating, although it has used interest-rate swaps in the past to convert floating-rate debt into fixed-rate obligations. The company has about USD700 million in outstanding debt.

Merrill Lynch has hired Tim Apatu from Barclays Capital in London, as a director in the corporate fx sales group in London, focusing on U.K. corporate clients. He will report to John Langley, director in European issuer sales, according to a Merrill spokesman.

Spintab , a Swedish mortgage bank, has entered a foreign-exchange swap on the back of a floating-rate EUR50 million (USD48.85 million) medium-term note to convert it into a Swedish krona-denominated bond and will continue to enter similar swaps throughout the year. Stefan Abrahamsson, dealer in Stockholm, said the bank uses currency swaps on all of its offerings within its MTN program because it issues the bonds in euros, dollars or other major currencies, but needs to fund its mortgage portfolio in Swedish krona. Abrahamsson would not disclose the exchange rate on the swap. If the bank issues fixed-rate MTNs in the future, it will also use interest-rate swaps to convert fixed-rate exposure into floating, he added.

Royal Bank of Scotland Financial Markets has launched a structured credit derivatives desk in Hong Kong for the non-Japan Asia region, according to Anthony Yuen, managing director and Asia treasurer in Hong Kong. "We intend to do a wide range of things," said Yuen. The firm recently hired former Société Générale veteran Tak Leung as Asia ex-Japan head of structured credit product sales. Leung said he will handle products such as credit-linked notes and synthetic collateralized debt obligations, declining further comment.

"The U.K. warrant market has a zero chance of success."-- Johan Groothaert, managing director and head of equity structured products and alternative investments at Deutsche Bank in London, commenting on why Deutsche Bank decided not to enter the U.K. warrant market. For complete story, click here.

Five-year credit derivatives on retailer Sears, Roebuck widened roughly 75 basis points last week, on concerns the sluggish U.S. economy and anemic stock market will deter retail customers from spending, according to traders. Mid-market credit-default spreads began the week at around 105bps before widening to 180bps and then tightening to the 150bps level by late Wednesday in New York. "It started to widen out on recessionary fears, that people will be keeping cash in their pocket," said one trader in New York.

UBS Warburg has hired James Paget, executive director and derivatives marketer to insurance companies at Goldman Sachs in London, as an executive director in the European financial institutions derivatives marketing group in London. He will be responsible for advising U.K. and Swiss insurance and pension funds about asset and liability management as well as credit exposure management.

UBS Global Asset Management (Australia), one of the largest asset managers in Australia with over AUD15.1 billion (USD8.13 billion) under management, is studying the possibility of using credit derivatives for the first time, according to Stuart Piper, head of fixed income in Sydney. It is considering selling protection on Australian and foreign corporates to gain exposure to the credits. He singled out Ford Motor Credit as an example of a foreign company with outstanding bond issues in Australian dollars on which it would consider selling protection.

Indosuez W.I. Carr Securities, a subsidiary of France's Crédit Agricole Indosuez, is bringing aboard James Young, associate director in the equity risk management group at UBS Warburg in Hong Kong, in a new role focusing on Korean equity derivatives marketing, according to an official at the firm. Young, who starts in the coming days, will concentrate on the burgeoning Korean market rather than the rest of the Asian region as he had at UBS, according to a market official. He will remain in Hong Kong.

The London Stock Exchange has set a provisional date of Sept. 23 to kick off a U.K. securitized derivatives market but several of the biggest warrant houses will not be taking part, according to officials at the firms. The stock exchange had restricted access to automated trading to a group of five: Goldman Sachs, SG Securities, JPMorgan, Citibank and Macquarie Bank, because of limited capacity on its trading system. But, after Citibank and Macquarie pulled out UniCredito stepped up to the plate. Officials at the LSE did not return calls.

UBS Warburg is preparing to lead a debt financing package backing the $300 million acquisition of Nellson Neutraceutical by a partnership between Fremont Partners and existing management. The San Francisco-based sponsor is putting approximately $180 million in equity into the deal, and the leverage will consist entirely of bank financing in the form of an institutional loan, according to one banker. Details on terms, pricing and date of launch could not be ascertained. An official at Fremont declined to comment, and UBS bankers did not return calls by press time.

Credit Suisse Asset Management has launched a new short duration bond fund that seeks to provide an alternative to investors seeking higher potential returns than money market funds at a time when traditional money market fund yields are at historic lows, according to BW sister publication Money Management Letter. The fund invests in corporate bonds, mortgage-backed securities and asset-backed securities, places an emphasis on investment-grade securities, and has a duration of one to three years. The strategy is being marketed mainly to retail investors, but Linda Moore, director of product management, said institutional investors, such as pension plans, which are interested in the short duration fund, can invest in a separate account that offers a similar strategy. According to portfolio manager Suzanne Moran, the firm believes interest rates will remain in the historic low range over the short term based on the firm's fixed-income research and the performance of credit instruments.