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The Italian ABS market welcomed another powerhouse issuer this week as Banca Nazionale del Lavoro closed its inaugural securitisation of residential mortages - the largest yet in the asset class. Lead managed by bookrunner ABN Amro with joint lead Banca Nazionale del Lavoro, the Eu2.2bn offering closed oversubscribed to a broad range of investors across the capital structure.

France Crédit Agricole Indosuez has launched a synthetic single tranche collateralised debt obligation of investment grade corporates, worth a notional Eu700m.

The Italian non-performing loan asset class saw a welcome revival this week as Dresdner Kleinwort Wasserstein (DrKW) brought two offerings to market - a securitisation of secured and unsecured loans for Banca Popolare di Lodi (BPL), and another for Pirelli&C Real Estate. The success of both issues will reaffirm market sentiment in the asset class, which has suffered in recent months after several high profile deals came under ratings pressure last year, including Banca di Roma's Trevi Finance.

Italian banks Unipol Banca, Banca di Romagna and Cassa di Risparmio di Cesena pooled commercial and residential mortgages to tap the term MBS market this week. While the deals highlight the continuing popularity of mixed MBS among Italy's smaller banks - four issues have now been launched in the asset class this year - they also illustrate the increased premium that the asset class is demanding over prime RMBS, due in part to the 100% risk weighting of the bonds.

Crédit Agricole Indosuez this week launched Daphne Finance I plc, gaining regulatory capital relief on a Eu3bn portfolio of loans, guarantees and advances via CAI and Credit Suisse First Boston. The SPV issued six tranches rated by Moody's and Standard&Poor's totalling Eu320.7m, all averaging 4.75 years.

Nextel Communications bank debt has been ticking up since the company filed a shelf registration on March 27 for up to $5 billion in new securities. Market players speculate that the digital mobile phone operator could be one of the seasoned issuers poised to tap the capital markets for new financing. "This shelf will provide Nextel with the means to refinance our balance sheet at the appropriate time and in the most cost-effective manner," said Paul Saleh, Nextel's cfo, during the company's conference call this week. The company's "B" piece traded as high as 98 1/4 following the call before slipping back into the 97 1/8- 97 7/8 context. Before the earnings call, the tranche was trading in the 97 - 97 1/2 range.

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Sung-Uk Hong, Director general, head of treasury and international finance

The European inflation-linked bond market has flourished as institutional accounts have allocated funds into the sector, and most analysts view France's OATis and OATeis as overvalued on a fundamental basis. But with the structural portfolio shifts set to continue, further supply is awaited. Meanwhile euro investors are witnessing the creation of what will perhaps be a benchmark euro callable market.

Successful benchmarks for the European Investment Bank, Freddie Mac and Kreditanstalt für Wiederaufbau this year have demonstrated how well their euro programmes have been accepted. But even as their issuance strategies are placing them ever closer to governments, challenges remain. The three are therefore refining their messages in a bid to overcome or take advantage of investors' latest concerns.

Min-Young Chang, Deputy general manager, international finance department