Securitization People and Markets

American Capital Access has hired Laura Schwartz as a managing director responsible for asset-backed securities and mortgage-backed securities, says Cathy Bailey, a spokeswoman at the buy-side firm. Schwartz, who joins from Merrill Lynch, where she was a director in the asset-backed finance group, replaces Ken Mulford, who recently joined Salomon Smith Barney's mortgage finance division (BW, 8/4). She will directly report to Maryam Muessel, coo. ACA is a New York-based insurance company that originates ABS and collateralized debt obligations as well as managing a portfolio of structured finance investments.

Hispamer, a subsidiary of Banco Santander Centro Hispano, is preparing a E1 billion debut auto loan securitization. The mandate for the deal was won by J.P. Morgan Securities last week. The deal, which is expected to be the first in a series, should be priced in late November or early December. Arturo Miranda, v.p. securitization at J.P. Morgan, says the deal will be one of the most important to originate from Spain this year because Hispamer is a first-time issuer with an E20 billion pan-European loan book. This deal will be backed solely by Spanish assets.

Banc of America Securities has released at least two senior investment-grade salesmen and one trader, according to a high-grade executive at the firm. Tim Gordon, a trader, and Lou Russo, a salesman, were both managing directors in the firm's New York office. Gordon was one of the first traders of crossover credits on Wall Street, and already had offers from four or five firms soon after he was let go, say traders at rival firms. Russo was head of sales at B of A earlier in his career. Butch White, a salesman who was based in Charlotte and who had over 20 years experience, was also let go. One other senior person was released from the high-grade group, according to the executive, who declined to name the person. Gordon, White and Russo could not be reached. Calls to Jim Kelligrew, head of investment-grade fixed-income, were referred to Tara Burke, a spokeswoman, who declined to comment.

Last week's debt exchange by power company AES Corporation could be the tip of the iceberg as other junk issuers facing near-term debt maturities and a difficult primary market are expected to consider similar deals. The high number of fallen angels with complex capital structures has created an opportunity for more creative exchange offers, says Brendan White, portfolio manager at Fort Washington Investment Advisors.

Ambac Assurance Corp. has hired Evy Adamidou as first v.p. and senior transactor for collateralized debt obligations and credit derivatives, says Michael Schoezer, managing director and head of structured finance and credit derivatives. She will start Wednesday.

Credit Suisse Securities Ltd., the European broker/dealer arm of Credit Suisse Group, is looking to add selectively to its London fixed-income sales team. Roger Jones, sales manager, says the firm is looking to expand and develop its German- and French-speaking institutional client base and, accordingly, is looking for experienced fixed-income salespeople with the appropriate language skills. The London group specializes in credit products and is made up of roughly 35 people.

Dominion Resources will hold an invitation-only, one-and-a-half-day conference exclusively for fixed-income analysts and investors in its hometown of Reston, Va. in November, says Scott Hetzer, senior v.p. and Treasurer. Utility analysts say it is highly unusual for an issuer to devote so much time to the fixed-income community. One assumed that the meeting is an attempt to mend fences with fixed-income investors. Dominion lowered earnings guidance just a few days after issuing its 5.7% notes of '12 on Sept. 9. Dominion included a last minute step-up coupon to compensate investors in the event of a possible ratings downgrade, which caused spreads to snap back after some initial widening. The analyst's other, admittedly "cynical" explanation for the meeting was that keeping equity investors away would allow the company to pacify bond investors without alienating the equity side.

Technology was the big loser through last Thursday, though weakness was widespread following the equity slump. Allied Waste softened ahead of new issuance.Fleming andHealthSouth saw heavy selling yet again. Here is other selected action.

A high-yield portfolio manager and a lodging analyst are divided on the high-yield lodging sector. Tom O'Reilly, analyst and portfolio manager at Lincoln Capital Management in Chicago, Ill., says lodging is trading too rich for industry fundamentals. Lincoln upgraded its lodging portfolio earlier this year, and O'Reilly says even the highly rated names the firm has added are beginning to look like possible candidates for sale. Lincoln's Starwood Hotels & Resorts 7.875% notes of '12 (Ba1/BBB-) had moved up to 99 last Monday and the John Q. Hammons Hotels 8.875% notes of '12 (B2/B) were at 97. O'Reilly says he would sell both issues at par. "Most of the upside is already priced in," he says.