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UBS Warburg Principal Finance last week completed a Eu1bn synthetic collateralised debt obligation backed by a portfolio of investment grade corporate debt and asset backed securities on UBS's trading book. Arranged by Citigroup/SSSB, the deal is the second synthetic CDO to come from the European principal finance group, following the established programme of issuance set up by the group's counterpart in the US.

BNP Paribas last week issued Eu239.5m of notes from Mistral Investments SA, referenced to a Eu3.5bn portfolio of US and European corporate entities. Three tranches of notes were issued as five year bullets, with the triple-A notes coming at 55bp over three month Euribor.

JP Morgan last week priced a $550m collateralised fund obligation (CFO) managed by Man Investment Products. The deal, increased by $50m from its original size, is the second CFO to be launched after Credit Suisse First Boston's deal last Thursday for Investcorp. Although JP Morgan's deal was priced just before CSFB's deal on Wednesday, it has yet to be listed, and is expected to close on Wednesday. JP Morgan declined to comment on the Rule 144A, Reg S transaction, which was increased during marketing from $500m.

Malcolm Wager, global head of all non-equity trading at ABN AMRO in London, has left the firm, according to market officials. A memo sent out by Piero Overmars, global head of global financial markets, said Wager's departure has allowed the firm to restructure its department. Wager could not be reached for comment. It could not be determined why he left the firm.

Adelphia Communications is still winning attention from investors in the loan market this week with both par and distressed desks taking a look at the name. Small pieces of the Century Cable facility were said to have traded in the 88-89 region. Bigger banks pressured by their credit committees to reduce exposure are supplying the paper, one trader said. After a bank call earlier this week, bids for the paper sunk once again into the mid-80s. Many market players believe that at the end of the day it's a par name, but, as one dealer noted, "who knows if this company falls into Chapter 11." The company's spokeswoman declined to comment.

David Eline, v.p. and senior marketer at Bank of America in London, has joined creditex in a similar role. Eline, who joined two weeks ago, will market the product to European customers, according to Brad McKinnon, head of the London office. Eline reports to McKinnon.

Citadel Investments, a Chicago-based hedge fund with $6-7 billion in assets, has hired Vince Kaminski, founder and head of Enron's research group in Houston. Kaminski, a quantitative heavyweight known as "the genius" within Enron, referred questions to Scott Rafferty, an investor relations official, who declined all comment.

TD Securities has hired Michael Chacos as v.p. and director in credit structuring in London. Chacos was previously at Bank of America in the structured credit products group. He will start at the end of the month and report to Charles Colbourne and Hal Holappa, co-heads of credit derivatives in London and also to Joe Hegener, head of high-yield credit derivatives in New York, according to Colbourne. At BofA, Chacos reported to Paul van der Maas, managing director and head of structured credit products in London, who declined comment.

Credit Suisse First Boston has hired Joe McHugh, a credit derivatives flow trader at Deutsche Bank in New York, in a similar role, according to a market official. McHugh, who left Deutsche Bank about a week ago and will join CSFB on June 10, will report to David Carlson, managing director and head of North American Credit derivatives.

One-week to one-month U.S. dollar/yen implied volatility rose sharply Tuesday afternoon on the expectation that the Bank of Japan would intervene in the yen--which happened Wednesday morning at a price of JPY123.70. One-week implied vol rose to 11% from 9% Tuesday and one-month implied vol climbed to 9.75% from 7.95% the week before. One-year implied vol did not move as much over the week, rising to 9.23% from 9.08% because investors were buying options based on expectations of short-term spot moves.

XL Capital Assurance, a financial guarantor, has recently added three securitization veterans to its growing New York operation. David Blakeslee, v.p. in the mortgage and asset-backed securities analytics group at Merrill Lynch, joined as v.p. in its analytics group; Scott Madden, assistant v.p. public finance in its structured single risk group, and Kate Manion, assistant v.p. in its surveillance and research group, both joined from MBIA where they were assistant vice presidents. Blakeslee will do quantitative analysis and modeling of structured finance products, reporting to Hong Jiang, v.p. analytics group. Madden will focus on new business and underwriting, reporting to Wynne Morriss, senior managing director in the structured single risk group. Manion will focus on surveillance for consumer ABS, franchise loans and CDO deals, reporting to Dick Heberton, managing director.

Emanuel Derman, managing director and head of the quantitative risk strategies group in the firm-wide risk department in New York, is leaving Goldman Sachs next month. Derman is "one of the most prominent quantitative analysts in the options area," according to Andrew Harmstone, head of European derivatives and quantitative research at Lehman Brothers in London. Derman also won the International Association of Financial Engineers' coveted Financial Engineer of the Year award in 2000.