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Tokyo-Mitsubishi International is planning on becoming a market maker in credit derivatives. The firm anticipates making its first single-name credit default swap trades in the next three or four weeks and expects to have the business up and running by the start of next year, according to Robert Hammond, managing director and head of fixed-income trading and sales in London. He said the firm will not take a market-share approach and will instead focus on areas where it believes it has an advantage, such as in Asia excluding-Japan or highly rated European banking credits.

The European swaptions market is experiencing a severe crunch in implied volatility, as the rising cost of options and expected continued demand from pension funds looking to hedge fixed guaranteed annuities has created a one-way market with market-makers looking only to buy volatility in anticipation of more demand. In the last two weeks spreads on bids and offers--if they could even be found at the same time--were anywhere from five to seven times wider than normal, according to one market official, who also noted notional deal sizes have dropped by more than 50%. "There's a real dislocation of the market right now, a scramble to pick up vol," noted one head of interest-rate swaps in London, adding, "the number of people trying to sell is very limited." Vol for a 10 year option to enter a 20 year swap rose 10.61% Wednesday from 7.31% at the beginning of October, according to UBS Warburg.

Westdeutsche Landesbank has hired Tim Nathan, a director in the structured bonds area at Barclays Capital in London, as an executive director in the asset securitization and principal finance group. He starts later this month and will report to Robin Saunders, the London-based head of securitization. Saunders did not return calls. A WestLB spokesman said the position is a new one and is necessary as the firm increases its securitization business, but was unable to provide more details.

Credit Suisse First Boston has stepped up to join Deutsche Bank to fully underwrite the $5.5 billion bridge loan to EchoStar Communications to finance the Hughes Electronics acquisition from General Motors for $24.6 billion in cash and stock, after market players were mystified last week as to why Echostar's advisor, UBS Warburg, was not on the roster. CSFB advised Hughes on the deal.

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.

Greg Hosbein, portfolio manager with Segall, Bryant & Hamill, says he is swapping 3% of the firm's portfolio, or $33 million, out of Treasuries into conventional Fannie Mae and Freddie Mac 30-year pass-throughs. He is making the move on the view that spreads on mortgage bonds are widening to attractive levels, and because he sees the Treasury rally potentially ending soon.

Henderson Global Investors has shifted out of U.S. government bonds and is looking to add new issuance in the single-A and triple-B range. "We're beginning to think about more single-A and triple-B names, but there is still a lot of pain out there," said Peter Moore, portfolio manager. He says the firm added the recent Rentokil (BBB) and Marks & Spencer (A3) issues to take advantage of companies being forced to fund despite wide spreads. Rentokil priced last Wednesday at 145 basis points over gilds. The firm sold off its U.S. govvie positions in its £37 billion global bond portfolio, because spreads on triple-A credits were too tight and it is looking elsewhere for value. Henderson's global portfolio has roughly 25% in non-U.K. assets, 33% in European assets and 42% in U.K. assets.

One savvy novice bank debt trader traveling on the number six subway train knew better than to let a pesky journalist peek over at his notes last Thursday morning. Eyeing the suspicious character checking out the fact file which explained how a trader should: 1) know the full value of the company, 2) be aware of the fundamentals and 3) check out the 8-K's, the young gun promptly stood up and turned his back on the journalist, hiding the key info. Curses. foiled again.

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 in the coming month. It is designed to provide a look at potentially available money in the market as credits are renewed or retired.

Taplin, Canida, & Habacht, a Miami, Fla.-based money manager with some $4.5 billion in taxable fixed-income under management, has been selling five- to 10-year bonds of financial and supermarket companies in order to buy 10- to 30-year new corporate issues. Portfolio manager William Canida says the firm has been buying new retail food paper and new and secondary auto company debt. He says the firm has traded some $300 million in the past month, and may look to swap another $150 million if it continues to see new issuance in triple-B names in cyclical sectors such as autos, which must come at a heavy concession in the current tight credit environment. Canida says there is nothing on the new issue calendar that the firm is eyeing aggressively at the moment, and he says it has probably finished adding to autos in the secondary market.

Andrew Stotland has left Amroc Investments for Samco Capital Markets to source bank debt and bonds. Samco opened an office near Penn Station last year, and is a brokerage house based out of Dallas. It focuses on bank debt and bonds but also does some work in equities. Stotland reports to Scott Siemers, senior managing director.