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Zurich-based Credit Suisse Group has agreed to acquire bankrupt subprime mortgage lender ResMae Mortgage for $19.1 million, subject to higher bids at auction, according to the Associated Press. A company operating under Chapter 11 that wants to sell its assets typically must submit to a court-supervised auction even when a buyer has come forward to purchase the business. The auction process ensures the greatest possible recovery for creditors.

Fitch Ratings has refined its asset-backed commercial paper (ABCP) criteria to reflect the new structures, assets and increased complexity of transactions seen in markets around the globe. Details on the changes can be found in Fitch’s report, entitled Global Asset-Backed Commercial Paper Criteria. There are currently about 300 active ABCP programs with $1 trillion in outstanding CP in the US market.

Ratings Agencies may need to review prepayment assumption levels on Italian residential mortgage-backed securitizations if levels spike as borrowers are given more flexibility to pay off debt with recent changes in law.

Citigroup and AXA Investment Managers are planning a second tap of a principal-protected long/short credit fund of single-name credit-default swaps, indices and bonds.

KBC Financial Products, the equity, credit and fund-linked derivatives firm, has launched a synthetic collateralized debt obligation, Regent Street.

Merrill Lynch has transferred Duanmu Zhenyu, a senior exotic equity trader, to Hong Kong from New York to assume the role of head of equity structured products trading. Zhenyu is known in the market for his work modeling complex equity derivatives such as options on variance. Reached in Hong Kong, he noted that his new team in Asia was hiring, saying of the hires, "Tell everybody." Further questions about the move were forwarded to spokesman Mark Tsang who did not respond by press time. It could not be determined if this is a new position or a replacement.

CIBC World Markets in London has hired a head of marketing for European debt capital markets.

Pricing in the European commercial mortgage-backed securitization market has been tighter than expected so far in 2007, and that trend is likely to continue, analysts and bankers say.

LNR Partners is marketing its fifth collateralized debt obligation backed by commercial mortgage-backed securities.

Activity in selling protection on collateralized debt obligations has been relatively light so far this week as a result of high volatility in the synthetic asset-backed securities index.

Real Estate Synthetic Investment (RESI) is issuing a $180.9 million credit-linked note in a synthetic balance sheet securitization of a $13.4 billion portfolio of fixed and adjustable-rate first lien residential mortgage loans.

Credit Suisse is launching its first ever synthetic small-to-medium enterprise securitization, to be issued from its newly created Clock Finance vehicle.