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Swiss Re Capital Markets this week closed a $120m catastrophe bond that transfers the risk of windstorms in France and a hurricane in Florida or Puerto Rico into the capital markets. The deal is the first to securitise hurricane risk in Puerto Rico and it is also the first to provide using a catastrophe bond - what is known in the insurance world as a reinstatement.

The buyside in general sees the efforts to cut/waive assignment fees as a positive step, but still a few dozens steps away from the promised land. Roughly 60% of respondents said moves to alleviate the assignment fee burden have helped the market, noting that lopping off fees can make smaller trades more economical and investors tend to gravitate toward the players that will waive fees. But a large part of the "yes" group gave a qualified endorsement.

Sixty-nine percent of fund managers agree that consolidation has had a negative effect on the market this year, but responses indicated that they think this in varying degrees. The general consensus was that consolidation has placed the power of the market in the hands of a few banks. One manager went so far as to describe the market as an oligopoly. With bigger banks grabbing more of the market, "The survivors are taking advantage of their growing strength," said one manager, not specifying just how it is they're doing this. That power shift, some said, has taken some of the aggressiveness out of the market. "Banks are less aggressive in general," one respondent said. "Investors have [fewer] options, so suspect banks are able to take more out of trades. You get the sense there's more complacency."

Harnischfeger Industries' attempt to exit Chapter 11 bankruptcy is said to be prompting trades at around 50. Loews Cineplex's bank debt is now offered at 88, and bids are in the 85 range, according to dealers. An auction earlier in the week resulted in a trade of Bridge Information System's bank debt at 35.5, up from 30 last week.

Once frozen out from the international capital markets, Scandinavian corporates are these days more free to venture beyond their home region for funding. No longer able to rely on local reputation, the Nordic companies are learning to court investors and rating agencies to bring truly international deals. What these deals lack in size they make up for in quality, and, as Philip Moore discovers, both domestic and bulge bracket banks are jostling for the business.

Samsung Life Insurance, one of the largest insurance companies in Korea, recently purchased a credit-linked note from Deutsche Bank in Seoul. The USD30 million note is believed to have been structured by Deutsche Bank's Hong Kong office via a special purpose vehicle, according to a trader in Seoul. Further details of the transaction could not be determined by press time, but the trader noted this type of transaction is unusual in the Korean market. Officials at Samsung Life and Deutsche Bank declined all comment.

Spread levels of five-year protection on Cendant Corp. tightened considerably last week in response to the success of the company's USD800 million convertible bond issuance. Before last Monday's issue, spreads on New York-based Cendant were at around 230/260 basis points, according to Greg Rosen, director, credit derivatives trader at Credit Suisse First Boston in New York. After Cendent tapped the market those levels narrowed by about 65bps, and by the day's end they were trading at 180/210 bps. On Wednesday, default spread levels were holding steady at 180/200bps, said Rosen.

Investment trust corporations (ITCs) in Korea are expected to jump into the country's interest-rate swap market soon, after getting the green light to transact April 24 from the Financial Supervisory Service (FSS), according to swappers and asset managers in Seoul. Traders said ITCs, some of which have up to KRW5 trillion (USD3.8 billion) in bond portfolios, will start using swaps as early as next month. Market officials said although Korean insurance companies and local banks already use the OTC swap market, the regulator had previously barred ITCs because of their lower credit ratings.

Royal Bank of Scotland Financial Markets shocked the sterling interest-rate swap market last week by reportedly snatching a chunk of swap business from co-book runner Citigroup on behalf of Welsh Water, which was looking to unwind a hedge. "There was blood in the waters," commented a senior swapper at a rival firm, noting that taking business from a co-book runner is taboo. "There is normally a gentleman's agreement," said another. Citigroup units Citibank and Schroder Salomon Smith Barney had agreed to share interest-rate swap and bond underwriting duties, respectively, with RBS, according to officials at the firms. Officials at the firms denied any bad blood on the deal.

Rabobank has hired Jean-Marc Debricon, portfolio manager for structured investments and credit derivatives at the European Bank for Reconstruction and Development, as director in the structured credit trading group in London. Mark Lauber, executive director and senior structurer at Rabobank in London, said Debricon will join the group as a structurer of both cash and synthetic credit products next Monday. Rabobank is adding this position as the structured credit products market as a whole grows. Lauber thinks the Dutch bank is in a good position to take advantage of this growth because of its AAA/Aaa rating. The hire brings the number of credit structurers in London to five. The bank also has three traders in its London office. He will report to Mark Northway, global head of structured credit trading.

James McNab, a credit derivatives trader at UBS Warburg in Singapore, will join ABN AMRO in Singapore. McNab will report to Zafar Alam, senior v.p., head of credit trading and local markets, Asia. Alam noted that McNab will soon be on board, declining to elaborate. McNab could not be reached.

Barclays plans to hire derivatives conversant investment advisors in its London private banking office. Mercedes Paratje, global head of investment advisory in New York, said the recruits will advise high-net-worth individuals on investment opportunities and strategies, including investments and hedges which use derivatives. The recruits will report to Olivier Zucker, head of investment advisory in London. Zucker said he expects the hires to be on board early next month.