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UK non-conforming mortgage lender Kensington Mortgage Co this week launched its largest securitisation, a £600m equivalent issue in dollars, sterling and euros. Residential Mortgage Securities 13 plc, the group's 15th securitisation, included an oversubscribed senior dollar piece sold to US money market funds under rule 2a7 of the Investment Company Act. Two further dollar denominated tranches were sold by sole bookrunner Bear Stearns.

Renault Crédit International (RCI) Banque, which finances vehicle sales for Renault and Nissan, this week defied the odds in a volatile market by launching a Eu1.4bn securitisation backed by French auto loans. The first time issuer has established a new vehicle to allow further issues backed by loans from other countries. Despite being launched amid extreme volatilty in the auto sector, Car Alliance Funding plc came at 17bp at the triple-A level with an average life of 3.06 years, inside the last two auto deals of the year in July, which were both backed by French and Spanish loans.

Joint bookrunners Barclays Capital and Fortis Bank this week launched ASR Bank's largest ever securitisation of Dutch residential mortgages. Delphinus 2002-2 offered investors Eu1.702bn of five year paper and capitalised on the programme's strong name to achieve competitive pricing in a shaky market.

Germany DZ Bank has released details of the German residential mortgage deal it is bringing under the Provide programme for DG Hyp and five small co-operative banks. The synthetic transaction offers five tranches of credit-linked notes totalling Eu115.45m with a legal maturity of February 2047.

The bank debt of Nextel Communications bounced back up to the 88 level, with a trade taking place on Tuesday. Traders said the name was stronger because of the rally in the equity markets earlier in the week. The paper had slipped to the 84 1/2 - 85 1/2 level last week after a J.P. Morgan report stated that the company did not correctly account for its bad debt expense and its customer churn rate (LMW, 10/14). A financial official at Nextel could not be reached by press time. Encompass Services' bank debt remained stable, albeit in the 31-32 context, after the company announced that it would pursue a pre-packaged bankruptcy plan. The company's restructuring plan stipulates that $200 million of the company's outstanding $600 million of bank debt will be rolled into a new term loan and the remaining amount will be converted into an 80% equity stake in the reorganized company. Encompass has yet to secure creditor support for the plan. "The plan offers the best recovery for all concerned constituents," a company spokesman said. One trader, however, estimated that the recovery value of the bank debt could be as low as 35.

ING has named Leo Janssen, Asian head of financial markets in Hong Kong, as head of financial markets in the U.K. and chairman of its emerging markets committee. The position was created by the departure of Mark Fisher, global head of foreign exchange, money markets and derivatives and head of financial markets in the U.K., in July. The London-based position is a good opportunity to move back to Europe after a number of years building ING's Asian business, said Belgian-born Janssen. He starts in his new position this week.

Francois Pham-Quang, head of European equity derivatives sales at Lehman Brothers in London, has left the firm to start a fund that will securitize music industry assets. The fund, called The Music Fund, will securitize the future earnings of several types of music assets, such as catalogues of published songs. The concept is similar to The Pullman Group's securitization of royalty streams, colloquially know as Bowie bonds. However, the financial technology used will look more like mortgage-backed securities, according to Pham-Quang. He predicted the fund would start trading when it has raised USD150 million. It has seed capital of some USD30 million.

European credit derivatives dealers have agreed to back the so-called Aug. 27 restructuring proposal over a rival plan put forward by BNP Paribas in an attempt to present one voice in the restructuring definition debate in discussions with other participants, such as sellers of protection, end users and U.S. dealers. An e-mail sent last week by Robert Heathcote, managing director, and David Geen, senior legal consul at Goldman Sachs in London, said, "We must come to a conclusion which proposal the European dealer group are in support of, and then ensure that we back this proposal collectively and enthusiastically at the forthcoming ISDA market practice committee."

CIF Euromortgage, the personal credit arm of French real-estate giant Crédit Immobilier de France, has entered an interest-rate swap to convert a recent EUR1.75 billion (USD1.71 billion) fixed-rate bond offering into a synthetic floater. Laurent Tournaud, head of the dealing room in Paris, said the mortgage agency pays a three-month Euribor-based rate in exchange for a fixed rate. A second swap is then made every three months between the three-month Euribor and the Euro Overnight Index Average (EONIA).

Goldman Sachs is recommending investors speculate that the equity volatility spread between the European banking and insurance sectors should compress because of the belief that bank exposure to credit risk is not completely priced in for some banking names. Atlaf Kassam, associate in European equity derivatives strategy in London, said the firm is pitching the idea of selling Aegon implied volatility and buying Credit Lyonnais implied volatility to capture the tightening of the spread.