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First International Computer, a computer manufacturer in Taiwan, is considering entering interest-rate swaps to convert its floating-rate loans into synthetic fixed-rate liabilities. "We're getting quotes from banks," said Amanda Hung, manager of the finance department in Taipei, noting that the firm is looking to hedge TWD2 billion (USD58.1 million) of three and five-year loans issued--via syndication--in December and March. In the swaps FIC will pay a fixed-rate and receive floating, but Hung declined comment on specific rates.

Deutsche Bank has hired Kim Gayer, head of equity sales for Germany, Austria and South Africa at Société Générale in Paris, and his deputy Florian de Sigy. Gayer, who had been at SG for eight years, will join as a managing director and head of the Northern Europe sales team, while de Sigy joins as v.p. focusing on Germany and Austria.

Credit-default swap spreads on mmO2, the mobile phone company spun off by BT Group last year, blew out last Wednesday morning after the company announced its first annual results, which were characterized by what investors perceived as slow revenue growth. Default swap spreads on five-year mid-market protection widened to 400-410 basis points on Wednesday morning from 340-360bps at the start of trading.

Kevin Regan, co-global head of fixed income distribution at UBS Warburg and an individual credited internally with building the fixed income sales team over the last five years, has left the firm. David Shulman, previously co-head with Regan, takes over sole responsibility for the group. Shulman, based in Stamford, Conn., will manage the distribution and credit research teams based in Japan, Asia, Europe and the U.S., according to an internal memo obtained by DW and available online (click here). Regan could not be reached for comment.

UBS Warburg plans to expand its credit derivatives Web site to increase the transparency of basket swaps and synthetic collateralized debt obligation tranches. Alberto Thomas, director in London, said it plans to allow clients to download documentation and monitor transactions from July and will add a relative pricing guide and more sophisticated structuring tools in September. At the moment clients can structure and rate baskets of up to 50 names.

Citigroup Asset Management, which manages E5 billion in fixed-income assets through its London-based group, at the last minute pulled its order for Deutsche Telekom bonds, which were issued late last month. "We were not impressed with Deutsche Telekom's arrogance of not writing down debt and not addressing bondholders' concerns. We had an order in there, but pulled it. Our analyst was of opinion it's one to avoid," says Denis Mangan, director and head of European fixed income. Instead, Citi bought Imperial Tobacco's new issue last week and plans to buy Renault paper once it hits the market. Salomon Smith Barney was one of the co-leads on Deutsche Telekom's E5 billion deal.

Investor's Management Group may look to increase its exposure to collateralized mortgage obligations with premium coupons, on the view that rising interest rates will lead to extension risk. Kathy Beyer, manager of $5 billion in taxable fixed-income, says the firm may add up to 3% of its $160 million Core Bond Composite fund, or $4.8 million, to the asset class, while reducing its cash position. Mortgage spreads on PACs were 100-125 over Treasuries last Tuesday, and Beyer says she expects those spreads to widen, as corporate bonds investors who have sought safety in mortgages gradually shift out of the asset class. An additional 20 basis points of widening would trigger the move, she says.

The new Fleet HomeLink commercials from FleetBoston Financial having been running steady over the past two weeks as the Red Sox and Yankees squared off in seven games in 11 days. An informal tally appears to have Jeter having more lines than Nomar, which isn't right because Nomar's stats are slightly better so far this year. It's wicked unfair.

Napoleon Rodgers, portfolio manager withAlpha Capital Management, says he is going to rotate 15% of the firm's portfolio, or $15 million, out of Treasuries into mortgage pass-throughs, as he expects mortgages will outperform Treasuries with the prospect of stable or slightly higher interest rates. There is no trigger for this move besides the anticipation that, although the Federal Reserve may not tighten this year, the recovery should cause long rates to move up relative to short rates, hence shaping the curve in a more positive slope, he says. As a result, mortgage products should perform well due to their negative convexity and offer additional yield pick-up, he says.

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.

RailAmerica has refinanced its credit line to lock in interest-rate savings on its new $475 million credit facility. The company wanted to replace financing that was entered into when the interest rates were higher, explained Bennett Marks, senior v.p. and cfo, and Michael Howe, v.p. and treasurer. The company was able to reduce pricing on its term loans by 75 basis points and pay down part of its interest-rate hedge after improving its credit profile and performance.