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About $23 million of Federal-Mogul was auctioned off Wednesday in the 69 range as investors believe that asbestos claims will be settled soon. Last week the name traded as high as 66 before slinking back into the 62-63 range following reports that Carl Icahn and other bondholders have struck a deal with asbestos claimants. It is still unknown exactly how the bank debt will be dealt with as the restructuring negotiations continue, but investors are looking for value in near-term resolutions, explained one dealer.

First Commercial Bank is believed to be the seller in a $23 million auction of Federal-Mogul at 69 Wednesday as market players anticipate coming resolutions to the company's asbestos liabilities. The name traded as high as 66 before slinking back into the 62-63 range three weeks ago following reports that Carl Icahn and other bondholders struck a deal with asbestos claimants. It is still unknown exactly how the bank debt will be restructured as negotiations continue, but investors are looking for value in near-term resolutions, explained one dealer.

J.P. Morgan is allocating the $100 million add-on for Interstate Bakeries this week. The deal backs the buyback of 7.5 million shares of the company from Tower Holding Company, a subsidiary of Nestlé. The new credit is a term loan "C" and is priced at LIBOR plus 2%, said an investor, expressing dissatisfaction with the lack of an up-front fee and the skinny spread. The food sector is pretty hot, as demonstrated by thin pricing and the mass of demand, he added. National Dairy Holdings (NDH) "B" term loan has been well oversubscribed and is being flexed downwards 1/4% from 2 3/4% over LIBOR, he added. Wachovia Bank leads the $300 million NDH credit.

Tom Hopkins, a Goldman Sachs managing director working in technology investment banking has joined Deutsche Bank's leveraged finance group. "Hopkins will be a managing director doing origination for non-investment grade companies," explained spokesman Ted Meyer. "We've been bringing on board good people selectively over the last few months, such as Chris Johnson, from Merrill Lynch," he added, explaining Deutsche Bank is ramping up in the leveraged finance area. This year Deutsche Bank was second in high-yield bond underwriting globally and in the U.S., Meyer said. Hopkins worked at Bear Stearns and Alex Brown prior to Goldman, doing high-yield. He will report to Rich Byrne, global co-head of leveraged debt in his new role.

Bank of China International, the investment banking unit of mainland banking giant Bank of China, is looking to expand its newly established equity derivatives business in Hong Kong to encompass credit derivatives and convertible bond arbitrage by the summer. BOC International recently set up an equity derivatives operation in Hong Kong led by Warren Kwan, who joined from Deutsche Bank (DW, 2/4). Although Kwan was hired to set up the equity derivatives operation he will also be responsible for hiring for the credit derivatives effort, he noted.

Pacific Asset Management, with over USD65 million in assets in Singapore, is looking to manage its first synthetic collateralized debt obligation. "Banks are keen to do this deal--the only trick is to get rid of the equity tranche," said Desmond Soon, investment manager in the Lion City. He predicted the CDO would up to USD500 million.

Bank One, the sixth-largest bank holding company in the U.S, is planning to launch a credit derivatives operation in London. The firm plans to hire a team of between six and 10 traders and structurers. Bank One believes there is a promising business opportunity in Europe for the credit derivatives market and fears it will "miss the boat" if it doesn't act soon, according to an official. The firm is active in the European foreign exchange, interest rate and equity derivatives markets.

BNP Paribas is relocating Francois Carnet, Asia head of equity derivatives in Hong Kong, to New York in the coming weeks in a move that is seen as an effort to revive the firm's U.S. operation. Carnet will replace Vuk Bulajic, head of U.S. equity derivatives in New York, who resigned on Wednesday. It could not be determined by press time whether Bulajic was pushed aside or left of his own accord. Carnet declined comment and Bulajic could not be reached. A spokeswoman in New York was unable to provide a comment by press time.

Banc of America Securities has hired Leif Andersen, a senior quant in Gen Re Securities quantitative research department, to fill a newly created position in New York covering the global credit derivatives market. Andersen, who joined BofA two weeks ago, said his exact title has yet to be established, but added that he will be concentrating on global credit derivatives quantitative research at first and then begin branching out to cover structured products and other asset classes. He reports to Nessan Fitzmaurice, chief technology officer and head of quantitative research. Fitzmaurice declined comment.

Crédit Agricole Indosuez plans to hire a managing director and two additional directors in its New York credit derivatives operation. The move is part of a global credit market push, according to an official. Last September the firm launched its first Asian credit derivatives desk in Hong Kong (DW, 9/23/01) and New York is the next market it is looking to tap because of the increase in North American end users, specifically hedge funds, mutual funds and insurance companies.

Bayerische Landesbank will launch a EUR2.5 billion commercial mortgage-backed securitization, one of the largest-ever from Germany, within the next 45 days. The deal, called Nymphenberg, will securitize commercial property loans from seven European countries, according to a banker involved with the deal. The deal will be structured using derivatives, but the final structure has not been determined. Commerzbank Securities is the lead manager.

Credit Suisse First Boston has promoted Chris Carter, head of equity trading, equity derivatives and convertible sales and trading for the Asia Pacific region in Hong Kong, to global head of equity options. Carter, who will work from the firm's New York office, replaces Maurits Schouten, who resigned about three weeks ago, according to a firm official. Carter reports to Phil Vasan and Paul Calello, co-heads of CSFB's global equity derivatives and convertibles group. Calls to Carter, Vasan and Calello were referred to CSFB spokeswoman Victoria Harmon, who declined to comment.