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Kuoni Travel, a Swiss travel company, is planning to buy dollar calls/Swiss franc puts and sell dollar puts/Swissie calls if the dollar depreciates against the Swiss franc by 1-2%. The company has already carried out a similar transaction in which it bought euro calls/Swiss franc puts and sold euro puts/Swissie calls. Markus Bieri, head of the treasury competence center in Zurich, said the firm would enter the transaction to hedge predicted further strengthening of the dollar and euro against the Swiss franc next year.

The relaunch of the Chicago Board Options Exchange Market Volatility Index (VIX), which will introduce the ability to trade futures and forwards on the index, will encourage more trading strategies that play off the equity and credit derivatives markets. Alex Reyfman, U.S. credit derivatives strategist at Goldman Sachs in New York, said the improvements made to the index, combined with increasing interest in trading options on credit-default swaps, will better allow strategies that trade aggregate spread volatility on default spreads against equity volatility. The old VIX had been difficult to hedge, which restricted the number of players employing such strategies. The new index will encourage traders such as hedge funds and proprietary traders, to trade across the two asset classes, he noted.

"Given the low interest rate environment, insurance companies are going crazy for these types of notes."--Gin Lee, treasurer at Crédit Agricole Indosuez in Seoul, commenting on why several insurance companies are starting to turn their attention to the synthetic collateralized debt obligations market. For complete story, click here.

Fubon Securities, with over TWD64.5 billion (USD1.88 billion) in assets, is considering investing in a second synthetic collateralized debt obligation, possibly by year-end. The securities house became the first Taiwan-based entity to purchase a CDO tranche earlier this year (DW, 5/4). "It's still an attractive product," said George Huang, senior project manager in the fixed income and derivatives department in Taipei, noting that although credit spreads have tightened in globally, CDOs offer a higher yield than traditional fixed income instruments.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.