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Deutsche Bank is preparing to launch two synthetic collateralised debt obligations (CDOs), a Eu233.4m balance sheet deal with UniCredit Banca Mobiliare for UniCredito Italiano, and a Eu1.5bn managed synthetic arbitrage CDO for Axa Investment Managers. Jazz CDO 1, expected today (Friday), will be Axa's fourth managed fund, following Concerto, a high yield cash flow deal via Goldman Sachs in July.

Morgan Stanley's property securitisation programme, European Loan Conduit (ELOC), is to incorporate French assets for the first time, with two deals backed by properties from Electricité de France (EdF) and electronics company Thales. ELOC 9 is expected to come to market at the beginning of March as a Eu400m-Eu450m issue backed by a portfolio of office properties from EdF. In July 2001, Morgan Stanley Real Estate Fund and real estate company Batipart bought a portfolio of around 60 properties from EdF for Fr3.5bn (Eu533m).

The Italian government is considering enlarging its Eu6.35bn securitisation of delinquent social security contributions for the second time. The idea has been on the table since November. SCCI SpA, which is backed by about Eu50bn of late payments due to INPS, the Italian social security agency, was launched in November 1999 and tapped for Eu1.7bn in May 2001.

Two German mortgage lenders are taking advantage of the Provide platform, the mortgage securitisation programme established by government agency Kreditanstalt für Wiederaufbau (KfW) and HypoVereinsbank last October to promote the German housing market. BHW yesterday (Thursday) launched a Eu1.24bn transaction via SG, and Rheinische Hypothekenbank is believed to be preparing a Eu1.052bn securitisation, to be lead managed by parent company Commerzbank.

Syndication of Kmart's $2 billion DIP facility launched today is being shopped around with pricing at LIBOR plus 3 1/2% across the board with a 3/4% commitment fee on the $1.8 billion revolver. There is also a $200 million letter of credit facility for the bankrupt retailer, which has set out ambitious plans for a quick re-emergence in 2003, according to a banker. The tenor on the DIP is 27 months, in which time Kmart plans to invest in new technology, close unprofitable stores, and terminate the leases of about 350 stores.

U.S. Liquids, a liquid waste management company based in Houston, is looking to refinance a $100 million revolver led by Bank of America and Fleet Bank this summer. The existing line was set to mature this month, but has been extended to June 2, after an extension was provided to allow for an audit to be completed, said a source familiar with the situation. The same banks are likely to lead, he added. Earl Blackwell, cfo of U.S. Liquids, confirmed the refinancing, but declined further comment, including potential pricing or exact timing of launch. Pricing on the existing line, reduced from $111 million at the time of the extension, is LIBOR plus 3 3/4%, according to Capital DATA Loanware.

Nextel Communications traded down from 86 1/4 to 84 1/2 this week amid mixed market feelings. Buyers and sellers could not be determined. Falling from the 89-90 range earlier this month, the liquid name has begun to crossover to the distressed side. Some traders defend Nextel, speculating that dealers have been unloading the paper to purposely push the price down. But others in point to equity and bond prices, which have also experienced dips.

BANK ONE is preparing to launch syndication of a $400 million credit for Printpack, an Atlanta-based producer of flexible packaging. The deal is expected to hit the market by the end of the month. The facility will be used to redeem the 9 7/8% notes due in 2004, the 10 5/8% senior subordinated notes due in 2006 and replace the existing credit line, explained Susan Folds, a spokeswoman for Printpack. The existing line, a $188 million facility, was arranged by First National Bank of Chicago. Officials at BANK ONE did not return calls.

BNP Paribas is in the market with two synthetic lease facilities. A $235 million facility for Chiron, a global pharmaceuticals company, will fund the construction of two new buildings in California, hit the market Tuesday and a $60 million synthetic lease Specialty Laboratories was launched today.

Dade Behring traded up to 99-100 from 98 1/2 last week upon speculation by traders that a restructuring plan is in the works. Traders said a restructuring plan had been released but declined to comment on its contents.

Dade Behring, a producer of diagnostic goods and services, traded up to 99-100 this week from the 98 1/2 level last week upon speculation by traders that a restructuring plan is in the works. Traders said a restructuring plan had been released but declined to comment on its contents. Dealers speculate that collaterlaized loan obligation managers and other institutional players are among the buyers. Sellers could not be determined.

John Rusnak, the currency trader under investigation for losing USD750 million in foreign exchange trades at Allied Irish Bank's U.S. subsidiary Allfirst, wanted to buy a new risk management system for the firm more than a year ago, but was turned down because of budget restraints. David Aaron, director of sales and marketing at DerivaTech, a risk management software vendor in New York, said Rusnak approached DerivaTech more than a year ago because he wanted to replace Allfirst's risk management software.