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Croatia and Tunisia are keeping up the steady flow of EMEA sovereign issuance this quarter. Both countries will price euro denominated transactions today (Friday) and bankers predict that they will fly off the leads' books. Croatia met investors in Europe this week for a Eu500m seven year transaction that it has mandated to Citigroup/SSSB and Deutsche Bank, while Tunisia will bring a Eu300m 10 year offering via Dresdner Kleinwort Wasserstein and Merrill Lynch.

Morgan Stanley has begun pre-marketing the 12th issue from its EloC commercial real estate programme - colourfully named Gorgons, after the monster that turned its victims to stone in Greek mythology. The deal is secured on a single property in the centre of Paris, bought last year by real estate private equity house Blackstone Group. The property is leased to around 60 corporate tenants, including SNCF and Crédit Lyonnais.

FFS Bank, the German auto finance arm owned by Swiss car importer Emil Frey Group, this week closed its debut issue, a Eu285m securitisation. Lead managed by UBS Warburg, the deal will allow FFS to diversify its sources of funding from bank lines, which have come under pressure due to consolidation in the German banking sector. FFS plans to follow the issue with similar transactions at the end of 2004 and 2006.

Football securitisation is back in the limelight this week, but for all the wrong reasons. The collapse of Fiorentina's Lit67.5bn securitisation in September 2002 sent shockwaves through the market. It appeared to vindicate bankers who doubted that football clubs were suitable for the financing technique.

Twenty-five Sicilian healthcare enterprises used structured finance techniques to recoup past healthcare deficits in a Eu654m deal lead managed by Nomura this week. Crediti Sanitari Regione Sicilia (CSRS) repackages receivables owed by the Region of Sicily to 25 different enterprises throughout Sicily. Between 1995 and 2000 26 regions built up net revenue shortfalls, which were typically funded by the region retroactively.

Barclays Capital and Mediobanca this week completed the refinancing of a loan to Aeroporti di Roma (AdiR), the company that runs Rome's two airports. Romulus Finance Srl is a landmark issue, incorporating elements of a whole business securitsation - the first in Italy - using debt service covenants to determine gearing levels and a loan structure from the issuer secured over the assets of the borrower.

Jack DiMaio, head of fixed income for North America at Credit Suisse First Boston, is moving to sister outfit Credit Suisse Asset Management (CSAM) to take a senior global position. One CSFB insider noted that while the exact role has not yet been finalized, DiMaio is tipped to fill the vacant position of global ceo, reporting into Jeffrey Peek, vice chairman of CSFB. DiMaio declined comment, while Peek did not return calls left with his assistant.

The Credit Risk Mitigation subcommittee of the Basel Committee on Banking Supervision has said it will recommended that restructuring is not required as a definition of a credit event in credit-default swaps in order for the buyer to get regulatory capital relief, except where the protection buyer has no control over restructuring events. Robert Pickel, ceo at the International Swaps and Derivatives Association in New York, welcomed the move saying the decision demonstrates more latitude on the issue than Basel has previously shown. He noted, however, that the final say on the matter rests with the Basel committee.

Susquehanna Investment Group, one of the largest options trading firms in the U.S., has recruited Bob Gillis, director and trader in the New York portfolio trading and sales trading team at Merrill Lynch, said an official familiar with his plans. Gillis could not be reached. Kelli Crudo, spokeswoman at Susquehanna, confirmed the appointment, but declined further comment.

Calpine's bank debt moved up a couple of points, trading as high as 91-92, after the company announced that restructured agreements with its turbine manufacturers would allow it to avoid $3.4 billion in future capital expenditure commitments. While the company will not receive any cash back from the cancellation of the contracts, it does have credits with the manufacturers if it decides to move forward with turbine production at a later date, a company spokeswoman explained. Calls to Michael Thomas, senior v.p. of treasury, were referred to the spokeswoman.

A threshold structure is an intuitively appealing alternative to standard equity put options for creating a guarantee. An investor defines a target asset that needs downside protection. This target asset is often an equity index but it could also be a pool of hedge funds or almost any other type of investment that can be traded. Downside protection is achieved by systematically rebalancing the investor's portfolio into a security that will mature at some desired threshold level (e.g. the zero coupon bond) whenever the portfolio declines in value relative to that threshold. If the target asset rises in value, all else being equal, then funds are rebalanced out of the bond back into the target asset in order to maximize upside participation.

Banc of America Securities plans to make new hires for its New York-based equity derivatives trading operation, said officials familiar with the firm. It could not be determined whether the recruits will fill newly created positions or replace departed staffers. Jennifer DiClerico, spokeswoman at BofA in New York, did not return calls.