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Rating: BBB+ (Fitch) Amount: Eu150m

The first true high yield bond from Latin America in almost 18 months is set to come to market in early June, when Mexican rail transport company TFM prices a $170m 10 year offering. Lead manager Citigroup/SSB this week started planning a roadshow and working on a syndicate for the transaction. Some bankers away from the deal say Citigroup/SSB is talking of a yield of around 12.5%, but believe that a 13.5% yield will be necessary to generate sufficient demand.

Syndication of the Eu200m four year term loan for real estate investment trust Befimmo has been closed 30% oversubscribed. Sole mandated arranger SG is working out final allocations and will sign banks into the deal in mid-June.

The European market saw one of its first synthetic structures outside the traditional asset classes of mortgages and collateralised debt obligations this week. ABN Amro priced Etoile 2002-1, a Eu200m securitisation of consumer loans from its Parisian private bank Banque OBC-Odier, Bungener, Courvoisier. "It was a very successful transaction thanks to a very strong reception to any well structured deal in the market at the moment," said James St Johnston, syndicate manager for ABS and bank capital at ABN Amro in London. "The triple-A notes were two times and the triple-Bs 1-1/2 times oversubscribed."

The UK commercial mortgage securitisation market gathered pace this week as Merrill Lynch closed a £400m securitisation for Anglo Irish Bank. Even as the deal closed, news broke of a new commercial mortgage loan conduit programme provided by Merrill Lynch for NM Rothschild's real estate finance group. Monument Securitisation (CMBS) No 2 is Anglo Irish Bank's second commercial mortgage securitisation after a £385m deal last year, also via Merrill Lynch. The bank has a strong track record for its lending activities, which target existing clients. Between 1992 and 2001 Anglo Irish Bank reported total provisions of only £241,000, according to Standard & Poor's.

UK mortgage lender Southern Pacific this week launched its fourth securitisation with a £230.64m transaction backed by first and second lien non-conforming residential mortgages. Lead managed by Barclays Capital and Lehman Brothers, the deal marked an important step in the lender's history as an issuer.

Norwich Union, the UK life and pensions company, this week returned to its Equity Release Funding programme with a £300m securitisation of reverse mortgages. Led by Citigroup/SSSB, the deal is the first equity release securitisation to reach the market since Norwich Union launched a groundbreaking £222.5m deal in March last year.

Morgan Stanley's European Loan Conduit (ELOC) programme took on a Gallic twist this week with the launch of Dionysus, a commercial mortgage securitisation backed by a loan secured on properties occupied by state owned Electricité de France (EdF). Dionysus, the Greek god of wine, was believed to be the promoter of civilisation and a lover of peace. But his influence did not prevent Standard & Poor's (S&P) from downgrading EdF's long term credit rating from AA+ to AA on Monday.

EuropeLoan Bank, Europe's first successful internet mortgage bank, launched its debut securitisation this week with a Skr1bn (Eu110m) issue, sole managed by Barclays Capital. Set up in 1999 by structured finance boutique Fredell & Co, EuropeLoan extends residential mortgages in five European countries, but its origination has taken off most quickly in Sweden.