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Rhicon Currency Management, a fund manager with operations in Singapore, Geneva and Toronto, launched its first fund two weeks ago and it will trade over-the-counter foreign exchange options. Peter Jacobson, managing director in Toronto, said the fund's capacity is USD300 million. It is aiming to reach USD50 million within the first six months and USD100-150 million after its first-year results. "We'll use OTC currency derivatives for managing profits," said Christopher Brandon, managing director in Singapore. The firm will use the derivatives for both hedging and taking profits. For example, it may purchase currency in the spot market and when the pair has reached a target price it will sell the currency and purchase short-dated options to capitalize on further gains, while it has locked in some of the profits. However, Brandon continued that the firm will primarily invest in the Group of Seven currencies, mostly in the spot market and will occasionally trade short-dated options.

WeatherXchange, a joint venture between the U.K. Met Office and Umbrella Brokers, has hired Dan Tomlinson, head of weather derivatives at ICAP in London, to expand its marketing and consultancy services. Tomlinson, who started last week, said he will report to Cindy Dawes, managing director in Bracknell, U.K.

Emmis Communications bank debt jumped to slightly above 100 from the 97 range on news of an amended credit facility. Dealers reported two $5 million chunks changed hands. Early this week, Emmis announced financial covenant relief that would last until Dec. 1, 2002. According to the amendments, the company's leverage ratio will be increased to a total of 8.5 times over the next four quarters. Walter Berger, executive v.p. and cfo, stated that the company is committed to reducing its leverage. Calls to his office for additional comment were not returned by press time. Kate Healey, director of media and investor relations, declined to comment.

Despite the turmoil surrounding Enron, Merrill Lynch and Credit Suisse First Boston are plugging ahead with their $2.1 billion deal for Northwest Natural Gas' acquisition of Portland General Electric and one co-manager is said to have committed. A banker at Merrill described it as business as usual, while a CSFB banker said the Enron situation should not have any adverse impact. He added that six institutions have been approached for top-tier roles and this stage of syndication could be completed by year-end, though he declined to name any of the banks approached, the bank that has committed or disclose the up-front fees on offer.

J.P. Morgan, Credit Suisse First Boston, Deutsche Bank and Merrill Lynch are bringing back a reworked bank and bond deal for Collins & Aikman, backing the acquisition of Textron's auto-trim business for sponsor Heartland Industrial Partners. The expectation is that the bond market will be more receptive than in September when the original deal was to be launched. The acquisition, announced in August, was put on the backburner following Sept. 11 and the collapse of the high-yield debt market, explained John Peisner, senior v.p., investor relations for Collins & Aikman. A reworked deal with improved debt to EBIDTA ratios, a reduced price and more stock as currency, is the other major factor that should ensure completion of the financing by year-end, he noted.

Citibank's and Merrill Lynch's planned recapitalization for Paragon Trade Brands has been scuppered after Tyco International agreed to buy the diaper manufacturer for about $565 million in cash plus the assumption of $85 million in debt. A $425 million recapitalization for Wellspring Capital Management was coming to market, said a banker familiar with the proposed loan. But Tyco has stepped in and is unlikely to need any kind of financing, as it is such an immensely capitalized company.

Following a hefty initial public offering and some stellar gains this year, Weight Watchers International is refinancing its bank debt via administration agent Bank of Nova Scotia and lead arranger Credit Suisse First Boston. The company, described in a September 10-Q as significantly leveraged, has improved its profile since a successful IPO in November and is looking to trim its borrowing spread, said a banker familiar with the deal. The company's $418 million IPO tipped the scales as the largest IPO of the month.

Owens-Illinois' bank debt traded up to the 98 ¼-99 range from 97 this week on the lingering rumor of a bond deal. Volume on trades could not be ascertained by press time, but dealers indicate it's small. The debt has moved up from 93 over the month as Owens Illinois was rumored to be among the companies issuing notes to pay down bank debt. There has been no official company announcement, but the debt continues to get boosted on the rumor. "People are willing to trade on that alone," said a dealer. The Toledo, Ohio-based company is a glass manufacturer. Calls to R. Scott Trumbull, cfo, and the investor relations department were not returned by press time.

Charter Communications' debt traded this week at 98 ¼ in a $2.5 billion trade. Dealers cite the company's financial standing and a lack of new issue as the prime reasons for the interest. Matched against the debt of competitors such as Global Crossing and McLeod, which are both trading in distressed range, Charter looks solid, dealers said. Moreover, "There's no new issue and people are dying for paper," said a trader. Another credit pumping up on the low new issue is Adelphia Communications, which traded up to 98 7/8 from 98 ½ last week. Calls to Kent Kalkwarf, cfo at Charter, were referred to Mary Jo Moehle, director of investor relations, who declined to comment.

Credit Agricole Indosuez has added two members to its new loan team taking shape under Paul Travers, managing director. Charles Kobayashi and Charles Henneman signed on last week to help build up and expand a new investment management presence at the bank after the departure of Dan Smith and some other key loan players to Royal Bank of Canada two months ago.

Dealers reported a small trade of Enron Corporation's bank debt at 25 last Tuesday in a series of small trades following the company's Chapter 11 filing and debtor-in-possession financing. The debt dropped to 20 1/2 on Monday after the company filed for bankruptcy over the weekend, it bounced back to 25 after Citibank and J.P. Morgan offered $1.5 billion in DIP financing. Dealers say the bankruptcy filing can improve optimism on a company. "It puts a timetable on things," as one explained. Deutsche Bank and UBS Warburg are among the desks rumored to be active in the credit, although officials at both firms could not be reached for comment. Calls to Sharonda Stevens, company spokeswoman, were not returned.

An announcement on Monday that Enron Corporation had filed for Chapter 11 pushed trading levels up to 25 from around 20. Roughly $50 million has changed hands over the week. Dealers say the filing has put more certainty on a timetable for the company's financial issues to be sorted out. Citibank and J.P. Morgan have also offered $1.5 billion in DIP financing. Mariner Post Acute Network's debt traded on Tuesday in an auction at 69-70, which is up slightly.