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Nationwide Building Society has entered an interest rate swap to convert a recent GBP200 million (USD330.04 million) offering into a synthetic floating rate liability. Andy Hutchinson, assistant treasurer in Northampton, U.K., said the thrift decided to enter the transaction because its lending portfolio consists of mostly floating-rate debt. He explained that Nationwide does not always convert fixed-rate to floating-rate debt, but looks at its current debt portfolio to determine whether it needs to enter a new swap to hedge interest rate exposure. He declined to disclose Nationwide's target fixed-to-floating-rate ratio.

A Question of Greed?

Société Générale has hired Anneke Van Hoorn, trader on the European medium-term notes desk at JPMorgan in London, as a cash and credit derivatives marketer to German funds in London. Marcus Ribka, head of cash and structured credit sales to Europe (ex-France) in London, said Van Hoorn takes a new position. SocGen is expanding the group in anticipation of capturing business from funds as they divest equity positions and look to credit products for higher returns. Van Hoorn reports to Simon Lawless, head of the German fund sales group in London. Van Hoorn started at SocGen last Monday. Lawless referred calls to Ribka.

Southern Power Co., the wholesale power subsidiary of Atlanta-based energy giant Southern Co., plans to unwind approximately eight forward starting swaps with a total notional size of around USD500 million when it prices a bond issue of approximately USD600 million that is planned for June. Mike Harreld, senior v.p. and treasurer at Southern Company Services, the power firm's service arm, explained that the swaps were entered into in increments over the last 18 months, with Southern paying a fixed rate and receiving a LIBOR-based floating rate. Harreld declined to specify the rates.

Standard Chartered is making a push into selling derivatives products in Africa and has appointed Jean-Michel D'Oultrement, treasurer for U.K. and Europe in London, to be the head of markets for Africa based in London. D'Oultrement replaces Peter McLean, who has been appointed as chief executive of Standard Chartered Zambia, McLean said. D'Oultrement was traveling and could not be reached.

WestLB Securities Pacific, the Tokyo-based arm of Germany's Westdeutsche Landesbank, has beefed up its derivatives operation with several hires and transfers. "We have made a number of strategic hires in conjunction with refocusing our business on core credit and derivatives markets," said Terence Mark, deputy head of sales in Tokyo. He added, "These are growth businesses in Japan."

Asian equity derivatives market veteran Nick Waltner plans to start using over-the-counter derivatives when his fledgling hedge fund, Kulshan Capital Management, reaches USD50 million in assets under management. The Seattle-based fund, which has USD5 million under management, is building up a track record in the U.S. cash equity market and will look at overseas markets such as Asia in the coming months, he said. Waltner, who established the fund last year (DW, 3/18), was previously responsible for setting up an Asian equity derivatives business for Bank of America in Tokyo and before that ran the equity derivatives desk at Nikko Salomon Smith Barney.

Segall, Bryant & Hamill is looking to assume additional risk in its portfolio, either by moving down in credit quality or by adding to its mortgage-backed holdings. Greg Hosbein, portfolio manager of $1.5 billion, says the firm will shift about $30 million out of higher quality corporate or agency paper into lower-rated corporates or mortgage pass throughs in order to pick up additional yield. Before making the trade, Hosbein wants to wait for further spread widening in the secondary market, which he believes will occur as war-related concerns gather momentum.

While trying to contact a CDO desk late last week, a Loan Market Week staffer was told, "They're all in Scottsdale, Arizona." To which the naïve staffer said, "Oh, at the Asset Securitzation Conference." The bemused person at the other end of the line, responded, "No, playing golf." Believing this was a joke, the reporter went onto the Web Site of the conference and noticed that The Eighth Annual ABS West golf tournament was in fact underway on the Links golf course at the Arizona Biltmore. Sessions had concluded by tee-off.

The Deal Roll-off Chart, provided by Capital DATA Loanware, lists the 50 largest leveraged credit facilities in the U.S. market that are due to mature twelve months from now. It is designed to provide a look at potentially available money in the market as credits are renewed or retired.

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.

BWD Rensburg Ltd. is selectively buying new triple-A rated corporate issues. John Anderson, a Leeds-based portfolio manager of £21 million in gilts and corporates, says he has been putting new money to work in new issues from the European Investment Bank, the Inter-American Development Bank and the World Bank. Anderson buys bonds with a minimum maturity of five years, because of the fund's investment mandate. BWD Rensburg manages £300 million in fixed-income assets.