Search results for

UBS Warburg has done an about-face on Herbalife International by canceling a Euro 100 million bond sale after investors pushed for too high of a yield. Instead, the $165 million "B" term loan has been upsized to $180 million and the $150 million U.S. bond portion has been bulked up to $165 million.

The Yorkshire Building Society is seeking an assistant treasurer who will have a prominent role in the company's hedging activities. Chris Parrish, group treasurer in Bradford, said the new hire will be responsible for the transactional hedging of its GBP9 billion (USD13.4 billion) fixed-rate saving and loan portfolio. Parrish explained that the building society uses plain-vanilla interest-rate swaps to hedge the notional value of the entire portfolio.

Bruce Nichols, director-equity derivatives trader at Barclays Capital in London, has assumed responsibility for the firm's Eurostoxx 50 book, according to Jerome Bussière, associate director in charge of single stock trading in Europe. The book was previously managed by Arnaud Fransioli, who recently joined Voltrex Options, a specialist derivative brokerage house in London. Nichols confirmed the move, declining further comment.

Credit-default protection on AT&T Wireless Services blew out by roughly 150 basis points last week on fears the company's credit rating could get downgraded to junk status. Mid-market five-year default swaps referenced to the wireless company were trading at roughly 650 basis points late Wednesday, up from about 500bps at the start of the week. The widening occurred despite a generally positive tone in the default swap market due to strong demand from synthetic collateralized debt obligations. "AT&T Wireless has had a rough week, everyone is just real skittish on the sector and the credit," said one trader. Standard & Poor's added to the worries earlier in the week when it issued a negative forecast for the entire sector and said it would not turn around for possibly the next two years.

CIBC World Markets recently moved Takahiro Yamanaka, head of equity derivatives trading in Tokyo, to the head office in Toronto to become an exotic equity trader. The equities pro said he has been with the firm for six-and-a-half years and moved to the Toronto head office for the extra opportunities it offers. He reports to Trevor Radomsky, Canadian head of equity derivatives trading. Yamanaka declined further comment.

Bank of America is reportedly planning to launch an electricity derivatives trading desk in New York and has hired four former Enron traders to staff the operation. The quartet consists of Rogers Herndon, who heads the team, Gautam Gupta, John Suarez and Paul Broderick, according to market officials. David Mooney, global head of commodities, referred calls to BofA's media relations department. Jeff Hershberger, a spokesman in New York, said BofA is not currently a participant in the power derivatives market and does not comment on future business plans. Herndon referred calls to Mooney.

The Belgian Debt Agency is likely to enter forward-rate agreements to convert EUR10-15 billion (USD9.5-14.3 billion) of its floating-rate debt into fixed-rate debt next year. Anne Leclercq, head of the front office, said the expectation of higher interest rates in Europe is causing the debt agency to look at this option for its EUR30 billion outstanding floating-rate portfolio. She added that its budgetary needs would also play a role in the decision. Leclercq was speaking at Euromoney's Global Borrowers & Investors Conference at the London Hilton on Wednesday.

JPMorgan has hired Hosun Chang, v.p. in equity derivatives at Salomon Smith Barney in Seoul, in a similar role to establish an onshore equity derivatives marketing effort in Korea, according to market officials. Currently, JPMorgan markets equity products for Korea out of its Hong Kong office, where trading for Asia ex-Japan is also located.

Japan's Daiwa Securities SMBC is looking to set up a credit derivatives trading desk in Tokyo and begin marketing synthetic collateralized debt obligations later this year. "We hope to get this running before year-end," said Hayato Kino, deputy manager of the derivatives and structured financial products department in Tokyo. Kino, who is heading the effort, said the firm is also planning to begin marketing yen-denominated synthetic CDOs in Japan, likely within two to three months, due to growing interest and queries from clients. He continued that Daiwa has had a structuring team in place for sometime, which has handled such products as credit-linked notes. Kino noted that it is too early to elaborate on specific CDO products as it is still in the early stages.

JPMorgan has reportedly hired Ross Niland, v.p.-foreign exchange sales at Dresdner Kleinwort Wasserstein in London. Niland, who could not be reached for comment, is believed to be joining JPMorgan as head of U.K. corporate fx sales. Calls to Jamie Bonic, JPMorgan's head of fx sales in London, were not returned by press time. It could not be determined whether this is a new position or if Niland has replaced an employee from JPMorgan.

Japan's Tokio Marine & Fire Insurance Co. is looking to expand its credit derivatives portfolio in the coming months by investing up to USD1.5 billion in synthetic collateralized debt obligations. "We have an appetite for senior and high-rated portions," said Manabu Yukitomo, deputy manager in Tokyo. It is likely the insurer will invest in at least three transactions for its USD5 billion fixed-income portfolio before year-end. The insurer tested the water for CDOs earlier this year, but is now looking to start in earnest. "CDOs will allow us to diversify our exposure," he added.

Kookmin Bank, one of Korea's largest commercial banks, is planning to establish a credit derivatives desk and is studying the possibility of setting up an equity derivatives operation. "It's our objective to become a market maker," said K.K. Yoo, head of derivatives in Seoul. The bank will look to quote prices on credit-default swaps within 12 months. Yoo said the firm is in the initial planning stage but will look to set up trading systems and procedures as well as possibly establish a structuring operation that would handle products such as credit-linked notes. Yoo said the bank has an alliance with Macquarie Bank and plans to tap its knowledge to launch the desk.