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The $2bn 30 year tranche of the Republic of Italy's $4bn global bond tightened 3bp this week, after revised pricing announced last Thursday (February 20) proved the catalyst needed to generate sufficient momentum and a book of some $3bn for the transaction. Priced last Friday (February 21), the 30 year tranche tightened from 63bp over at re-offer to 60.5bp/59.5bp over yesterday afternoon (Thursday).

Guarantor: Japan Rating: Aa1/AA-

JC Penney, the US department store company, was able to access the US bond market for the first time in over a year this week with a blowout $600m seven year offering. The deal, led by CSFB and JP Morgan, was increased from an initial $350m as the split-rated company benefited from the happy combination of strong bids from high yield buyers and high grade accounts desperate for higher yielding cross-over credits.

Amount: ¥15.05bn Legal maturity: February 2010

Rating: A1/A+ (Moody's/Fitch) Amount: Eu300m

Banca Antoniana Popolare Veneta returned to its Giotto mortgage programme last week, bringing Eu685m of residential mortgages via ABN Amro. BAPV has been a regular issuer in the Italian ABS market since its debut securitisation in November 2001, closing two non-performing loan deals, as well as a prime Eu1bn RMBS securitisation in April last year - at the time one of the largest in the asset class.

Banco Santander Central Hispano and SG expect to launch the Spanish bank's Eu1.08bn consumer loan securitisation on Tuesday. There is no official price guidance yet. FTA Consumo Santander 1 follows an Eu850m consumer and auto loan deal closed by the group's subsidiary in December last year via JP Morgan.

The Italian residential mortgage market leapt ahead this week as Banca Intesa launched a new benchmark Eu2bn securitisation, closing heavily oversubscribed across the capital structure. Lead managed by Caboto-IntesaBci, Crédit Agricole Indosuez and Morgan Stanley, the deal beats all precedents for size - the closest deal is Banca Monte dei Paschi di Siena's Eu1.6bn deal closed in November last year.

The Italian region of Lazio this week used structured finance techniques to raise Eu1.1bn, clearing its past healthcare deficit. The deal is the first in a series of sale and leaseback securitisations of regional hospitals to come from the region the year. Arranged by Merrill Lynch and MedioCredito Centrale, and joint lead managed by Barclays Capital, Deutsche Bank and Lehman Brothers, the deal confirms the increasing sophistication of Italian regions in the ABS market. Sicily has recently closed two repackaging deals to fund employment and healthcare contributions and the region of Friuli-Venezia is planning a Eu100m real estate securitisation.

The war of the UK mortgage master trusts continued this week as HBOS made a successful return to its Permanent Financing programme, closing oversubscribed on all tranches. Lead managed by JP Morgan and Lehman Brothers with joint books Credit Suisse First Boston and Deutsche Bank on the senior tranches, Permanent Financing 2 closely follows a £3bn deal from Northern Rock in January.

Spain's mortgage securitisation market opened for 2003 this week after a long wait with the launch of Banco Pastor's debut standalone deal by Bear Stearns. Whereas several of the deals launched towards the end of last year were held at least in part as repo collateral, TDA Pastor No 1 was fully sold. The deal featured a number of innovations seen for the first time in the Spanish market. A non-accelerated interest-only strip was attached to the Eu47.5m longer dated senior notes, a feature normally only seen on UK non-conforming mortgage deals.