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Kirsty Jenkinson Thomas, who spent six years at Goldman Sachs as a European corporate bond analyst before departing in mid-summer 2001, has joined Friends Ivory & Sime's governance and socially responsible investment (SRI) team. Between leaving Goldman Sachs and joining FIS, Jenkinson Thomas conducted a research project into foreign direct investment in Myanmar and the associated risks to companies and investors, which underpinned a shareholder-led initiative known as Business Involvement in Myanmar (Burma) - A Statement from Institutional Investors.

* Merrill Lynch is in the early stages of preparing an arbitrage collateralised loan obligation (CLO) for French insurance company Groupama. The deal is expected to total around Eu300m, but officials at Merrill said that the issue is not imminent. * Bear Stearns is in the final stages of pre-marketing for FAB CBO 2002-1 BV, a Eu300m collateralised bond obligation (CBO) from Gulf International Bank (GIB). FAB is the first cash funded CBO with a portfolio of European asset backed securities. It is expected to launch at the end of the month.

The first securitisation of UK student loans is in trouble. The £1.03bn deal, THESIS No 1 plc, was launched by Greenwich NatWest in March 1998 to finance the parent bank's acquisition of a similar quantity of loans from the government's Student Loan Co. Moody's this week downgraded the 'A3' and 'A4' tranches, originally rated Baa3, to Ba2. The tranches were also rated BBB by Fitch. Moody's confirmed its Aaa ratings on the 'A1' and 'A2' tranches.

The fixed rate ABS sterling market kicked off this week as Canary Wharf Group plc, owner of the high rise office development in London's Docklands, launched a tap of its second securitisation of around £1.25bn. Lead managed by Citigroup/SSSB, Lehman Brothers, Morgan Stanley and RBS, the deal adds four new office buildings to the existing pool of assets. The buildings - located at Heron Quays - will be occupied by leads Lehman and Morgan Stanley, as well as Northern Trust and Clifford Chance.

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.