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Owens Corning's bank debt has been volatile over the last couple of weeks, propped up by reports that a bill providing for a universal asbestos trust is on the way and pressured by its bankruptcy proceedings and a large seller of paper. After sinking to the 50 level early this month due to market expectations that the bankruptcy judge will make a ruling that could threaten bank debt holders' recovery, Owens Corning soared back up to the 60 level as news concerning a universal asbestos trust disseminated through the market. Then early last week, the market for Owens Corning's bank debt slumped once more into the 551/2 571/2 range as a major dealer was believed to be paring its exposure to the name. Levels rose back into the 571/2 59 range once more as the introduction of the bill neared.

Financial sponsors are increasingly turning to the loan and bond markets to take dividends through recapitalizations as traditional routes for realizing equity returns remain limited. A liquid high-yield market is making recaps more attractive and feasible than trying to cash out in a spotty equity market, bankers and investors said, and limited partners are pushing for returns. "For many private equity firms there is a heightened awareness that limited partner investors are looking for a return on capital and a recapitalization is a means in which to achieve that objective," stated Michael Wong, a v.p. at Leonard Green & Partners.

UbiquiTel's bank debt was stronger last week, quoted wide in the 70-75 range. Two weeks ago the name had been quoted with wide bid/ask spreads in the 60s, according to LoanX. No trades could be confirmed. UbiquiTel is a Sprint PCS Group affiliate and all the affiliates are for the most part illiquid, noted one trader. The company recently achieved its first quarter of positive EBITDA, clocking in at $100,000. The reason for the tick up in the credit could not be determined, but in general wireless names have been inching up over the past month.

The Kingdom of Thailand returned to the dollar bond market after a six year absence with a $300m five year floating rate note yesterday (Thursday). Pricing is set for today (Friday).

JP Morgan has brought Kelvin Wong back into the fold after nine years, taking him from Deutsche Bank.

AUSTRALASIA

Citigroup returned to the Samurai market with a bumper ¥165bn five tranche issue offering generous spreads this week.

Australia

The first ever equity-linked issue for a Taiwanese bank was concluded on Monday as International Commercial Bank (ICBC) secured more than $3bn or orders for its $190m bond, exchangeable into Cathay Financial Holdings stock.

Australia

Seiko Epson plans to list on the Tokyo Stock Exchange in June, following a global roadshow and domestic retail offer that could result in the sale of roughly ¥106.4bn ($910m) of shares.

SG last Friday launched an $800m equivalent Euromarket issue for Resimac, its in-house vehicle that finances and services over 40 Australian mortgage lenders.