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KBC Alternative Investment Management, a hedge fund manager with USD1 billion under management, is launching a credit arbitrage hedge fund and will use cash and derivative instruments. Andy Preston, cio in London, said the fund will be market neutral and incorporate elements of capital structure arbitrage.

Pablo Salame, partner and head of credit trading for Europe and Asia at Goldman Sachs in London, is believed to have landed the new position of co-head of global credit derivatives. The move is thought to underscore Salame's status as a rising star at Goldman and puts him on par with Ron Tanemura, partner and global head of credit derivatives. Salame referred calls to the press office. Rebecca Nelson, a spokeswoman at Goldman, said Tanemura is moving to New York in January but declined further comment. Tanemura did not return calls.

Josh Penner, co-head of index options trading at Salomon Smith Barney in New York, has left the firm. Bret Engelkemier, Penner's co-head in New York, has taken over Penner's role, according to firm officials.

Schroder Investment Management, a fund manager with USD156.6 billion under management, is considering using leveraged credit derivatives to construct mutual funds in a move several bankers said would be the first instance of pitching credit derivatives to retail investors. John McLaughlin, head of the structured investment team in London, explained Schroder is looking at creating mutual funds that invest mainly in high-grade corporate paper, rated from AA to AAA, and also sell leveraged credit instruments, such as first-to-default baskets, to boost yield. The funds would be closed investments with a fixed-term and offering period, marketed to all types of retail investors and ranging in size from USD15-300 million.

Hua Nan Commercial Bank, one of Taiwan's largest banks with over USD36.3 billion in assets, is preparing to offer interest rate derivatives to its clients for the first time. "This is a new business for us," said Lisa Tsai, deputy treasurer in Taipei. She added, increasing liquidity in the swap market because of falling interest rates, has lead to growing customer demand for interest rate derivatives.

It's been a tough year for Asia's companies – all the more reason to applaud those who have earned recognition from investors in Asiamoney's 11th best-managed companies poll. This time the winners comprise a diverse bunch, from tech to property. Poll compiled by Olivia Chow and Robert Law.

Evergreen Investments will look to add exposure to sectors such as utilities and telecom that had been beaten up but are showing signs of recovery in a bid to add yield. The firm may also look to financial sector credits that have come under pressure such as J.P. Morgan Chase and Citigroup, says David Fowley, portfolio manager of the $530 million Evergreen limited duration fund. Fowley believes these are fundamentally sound credits that will eventually weather the negative headlines that have plagued them of late. Evergreen may add an additional $20-30 million in corporate exposure by the end of the first quarter of next year, though the fund will focus on buying credits that appear undervalued rather than meeting a predetermined target.

Taplin, Canida & Habacht will swap $200 million, or 10% of the firm's corporate bond portfolio, out of double-A rated financial bonds into triple-B cyclical corporates. Bill Canida, portfolio manager with the Miami-based firm, reasons that the economic recovery will cause cyclical bond spreads to tighten while rising interest rates will adversely effect banks and brokerage names. There is no particular trigger for this move besides the assumption that the economy is bound to recover soon. Canida says he is selling double-A five- to 10-year financial bonds at spreads over Treasuries inside 50 basis points. His buying target for the triple-B cyclical 10-year bonds is 500 basis points over the curve or higher. Those are trading at 400 basis over the curve as of last week.

Life is tough for those on the lower rungs of the loan market. While the senior members of desks across the country took off to spend the holiday weekend with their families, their younger counterparts stayed on to man the phones the Friday after Thanksgiving. One unlucky market player shared a sob story of having to give up an exotic vacation, even though experience has taught him that at the last minute his boss would tell him not to come in.

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.

SEB Investment Funds is looking to reverse its barbell strategy in its E3.75 billion fund managed out of Frankfurt. Once 10-year Treasuries yield 4.5% and 10-year European government bonds yield 4.75%, the firm will return to a neutral duration position, by buying back into the 10-year portion of the yield curve, says Martin Hochstein, head of fixed income. The move could happen by year-end, he says.