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Coastal Securities, a company based in Houston, Texas which specialises in securitisation, revealed more details this week of the repackaging of US Small Business Administration (SBA) loans it plans to sell in Europe. SBA loans are one of the better established of the smaller asset classes in the US ABS market, but they are little known among European investors.

The pace of change in the UK water sector accelerated this week as Westdeutsche Landesbank made an offer to acquire Mid Kent Holdings plc, owner of a small UK water firm. The bid by WestLB's asset securitisation and principal finance group (ASPF) is the latest move in a spate of corporate finance activity aimed at coping with the disappointing stockmarket and bond spread performance of the privatised UK water utilities.

The Washington Group's bank debt plummeted from par range to the low 60s after the company announced liquidity problems last Friday. A $25 million piece traded of Finova Group's bank debt traded at 81 1/2 to 82 range this week, as the company just filed for Chapter 11 bankruptcy protection. The filing is part of a $6 billion bailout plan from Leucadia National Corp. and Berkshire Hathaway. A piece of United States Office Products' debt at traded 58. Owens Illinois is trading in the high 92, low 93 range.

Christine Cromarty, director, agency asset swap marketing at BMO Nesbitt Burns in New York, and Amy Cohen, senior marketer for corporate and emerging market names at creditex in New York, have taken new positions at Banca Commerciale Italiana. Both are directors, with Cromarty marketing and structuring credit derivatives and Cohen trading and marketing. The positions were added in line with a global increase in the BCI structured credit platform, said Paolo Josca, head of credit derivatives in New York.

Matt Milsom, managing director and head of trading for Europe and Asia, has become the latest high-profile derivatives professional to leave J.P. Morgan Chase. Milsom, who came from Chase Manhattan, was offered Asian-based positions following that firm's merger with J.P. Morgan. He resigned at the beginning of the month because he did not want to move to Asia and because positions on offer in Europe were not sufficiently senior, according to an official familiar with the matter. Milsom declined comment.

CDC Ixis Capital Markets is restructuring its credit group to include exotic credit derivatives, such as first-to-default baskets of credit derivatives, and has spun off flow business into a separate group. Francois Mainard, deputy head of global fixed income in Paris, said the restructuring is designed to capture a bigger piece of the burgeoning European credit derivatives market. CDC opted to split the roles because it wants specialists for each department, he added.

Enron plans to begin trading financial derivatives on computer memory out of its London office in the near future. Steve Elliot, president of Enron Broadband Services Europe, said the energy and commodity trading giant presently only trades data capacity out of Houston, but plans to hire a professional to launch its European effort.

The state Treasury of Bundesland Sachsen-Anhalt, a state in Eastern Germany, is set to enter a EUR100 million (notional) interest-rate swaption if one-year futures on 10-year German Bunds trade above 109% of their issue price in the secondary market. It will use the swaption to hedge interest-rate risk on a EUR100 million bond the German regional authority plans to issue in the second half of the year. It has yet to choose counterparties for the swap, according toAxel Gühl, treasurer at Ministerium der Finanzen des Landes Sachsen-Anhalt.

Adam Friedman, equity derivatives marketer at J.P. Morgan in New York, has taken the new position of managing director, equity derivatives marketing to corporates at Bear Stearns in New York. The hire was opportunistic, said Don Martocchio, senior managing director and global head of equity derivatives sales in New York, adding that Bear Stearns has been look to up headcount in this area for some time. Friedman, who reports to Martocchio, is a senior member of an existing team of corporate equity derivatives marketers.

Morgan Stanley Dean Witter is structuring a synthetic collateralized loan obligation on a EUR1.3 billion (USD1.2 billion) basket of credit default swaps. The deal, dubbed Europower I, is structured on a basket of 130 European names with typical sizes of EUR10 million (USD9.24 million), according to an official familiar with the deal. Officials at MSDW declined all comment.

PointWorth Management Private Ltd. is launching a pan-Asia long/short equity hedge fund. The company, with approximately USD120 million in assets, is considering using over-the-counter equity derivatives, said Dennis See, ceo in Singapore. The fund will focus primarily on equities, but the investment managers will have "broad discretion" in their use of financial instruments, including derivatives.