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A pair of interest-rate derivative traders has recently quit Kookmin Bank in Seoul to take positions at other firms. Both traders said there was no connection between the timing of their departures.

IntesaBci is structuring a synthetic collateralized debt obligation to free-up trading limits and achieve regulatory capital relief on a EUR805 million (USD688 million) reference portfolio of investment grade bonds and loans. Andrea Fabbri, director and deputy head of credit derivatives in Milan, said the transaction is aimed at cautious credit investors, such as insurance companies, mutual funds and banks. IntesaBci deliberately limited the U.S. component of the portfolio to 25% because credit quality is deteriorating faster in the U.S. than in Europe and it wanted a low risk structure. This contrasts with recent synthetic CDOs, Deutsche Bank's Repon 15 and BNP Paribas' Riviera Finance deals, in which over 50% of the portfolios are referenced to U.S. names.

Macquarie Investment Management, with AUS22 billion (USD11 billion) in assets under management, is preparing to launch a new hedge fund that likely will use over-the-counter derivatives, including interest-rate swaps, equity derivatives and credit default swaps. The asset manager hopes the launch the as-yet unnamed fund in the coming months and expects to use OTC derivatives for hedging and leverage, according to Phil Dolan, head of marketing and product development in Sydney. He declined to speculate on the fund's likely size or comment on its strategy.

New Zealand fund management firm Armstrong Jones Ltd. plans to solicit its trustees for approval to use over-the-counter equity derivatives on New Zealand stocks. Amanda Smith, senior investment manager in Auckland, declined to put a timeframe on the move, but said the firm is interested in using equity options for leverage.

Peter Sugarman and Troy Bowker, senior members of Rabobank's structured finance team, have joined Lehman Brothers in London. Sugarman joined as managing director and European head of financial engineering and Troy Bowker joined as a director in the same group, according to a spokeswoman. Both report to Amany Attia, head of structured finance in London. The recruits started Monday. Attia, Sugarman and Bowker did not return calls. An official at Rabobank declined comment.

Sustaining momentum is China's challenge as the global slowdown looks likely to impact on its economic growth. By Pauline Loong.

Sustaining momentum is China's challenge as the global slowdown looks likely to impact on its economic growth. By Pauline Loong.

The heads of the big four banks in China tell Pauline Loong how they are planning to meet increased competition from global players after WTO accession.

The heads of the big four banks in China tell Pauline Loong how they are planning to meet increased competition from global players after WTO accession.

Soaring convertible bond issuance is a breath of fresh air in an otherwise stagnant Asian market. Volatility, dropping interest rates and retiring supply means we can expect more of the same in the coming year. By Chris Wright.

Citibank and Northern Trust emerged as leaders in this year's global custody poll. But customers still aren't getting everything they want from technology. By Olivia Chow and Robert Law.

Three takeover bids, between them involving Singapore's five largest banks, show that the long-awaited consolidation of Singapore's banking sector is finally underway – with a vengeance. It started in mid-June, when Singapore's third-largest bank, OCBC, made Keppel Capital, the smallest of Singapore's five major banks, a cash offer of S$3.38 per share and S$1.01 per outstanding warrant. That put the company's worth at $4.8 billion and represented 1.7 times its book value.