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Every issuer who made a trade in yen on Friday could be put in the financial category. And 14 of the 21 deals announced were for ¥500 million or less. CDC IXIS Capital Markets did a ¥300 million PRDC and a ¥400 million PRDC. The former is a non-call-three and has a trigger-redemption after three years and is callable annually thereafter. The other is a non-call-one and callable semi-annually thereafter. They both have terms of 20 years and pay initial fixed coupons of 5%. Nederlandse Waterschapsbank did a ¥1 billion 25-year trade via Nomura. It is a PRDC with an initial fixed coupon of 5.2% and is callable semi-annually. Caixa Geral de Depositos Finance closed two ¥200 million 30-year non-call-one notes to be issued on December 12. Both are PRDCs led by Mizuho. The first has a fixed coupon for the first three years of 4.5% and thereafter it pays a FX-linked coupon annually linked to the yen/US dollar rate. The second note pays a fixed coupon for the first year and thereafter it is linked to the yen/Australian dollar rate. It has an FX-linked trigger at three years. BNP Paribas announced four deals, three of which were for ¥100 million ($800,000) and have terms of 30 years. The other was for ¥300 million and goes out to December 2011. World Bank also did four trades, and the biggest was a ¥3 billion note. The others were for ¥2.5 billion, ¥1.4 billion and ¥1 billion. The last of these has a term of 31 years, the others a term of 30 years. Credit Lyonnais Finance announced three small deals, for ¥200 million, ¥55.7 million and ¥97.8 million. The first two have terms of three months each, the third a term of six months. They have fixed coupons of 2.5%, 5% and 5.5% respectively. First Chicago Tokio Marine Financial Products announced its 14th and 15th notes of the year, all of which have been denominated in yen. They were a ¥100 million one-month trade and a ¥100.32 million three-month trade.

Fourteen of the 24 trades issued were either 20- or 30-year notes. Most of these were power reverse dual currency notes (PRDCs). SEK issued six: two $300 million ($2.42 million) PRDCs that are due on December 17, and four $500 million PRDCs that are due on December 20. They are all private placements. CDC IXIS Capital Markets also issued a ¥500 million PRDC. It pays a fixed rate of 4% for the first year whereupon it becomes floating rate. It has a call option after one year and is callable annually thereafter. Other issuers in the yen long term are Daiwa Securities and International Finance Corp. World Bank and European Investment Bank both did ¥1 billion 30-year notes. European Investment Bank closed a ¥1 billion 30-year callable PRDC that pays a fixed rate of 4% in the first year. If it is not called after one year it will pay interest linked to the yen/euro FX rate and will have yearly call options. At the shorter end, Konica Finance USA Corp closed a ¥2 billion three-year note, due on December 13. And Macquarie Bank did two small trades for ¥65.67 million and ¥30 million. They go out 37 days and three months respectively.

Yen saw the usual demand for triple-A public finance borrowers such as KfW International Finance, Kommunalbanken and Kommuninvest I Sverige. Together these issuers raised $60.10 million-worth of debt and made up over one third of the market volume. Kommunalbanken did a ¥600 million ($4.83 million) 20-year note and a ¥1 billion 30-year trade. Salomon Smith Barney managed both trades. The issuer also did a ¥500 million 20-year note via Gen Re. This is the first time Kommunalbanken has used Gen Re as a Euro-MTN bookrunner, although the bank is a large counter party for the issuer. Triple-A rated Rabobank Nederland issued a ¥1 billion 15-year callable note. Daiwa was the bookrunner. The note is non-call-one and callable semi-annually thereafter. It pays a semi-annual coupon of 2% for the first three years and after that the rate becomes constant maturity swap- (CMS-) linked at 20 years minus two years. And Banque PSA Finance closed a deal for ¥1 billion yen as well. Kokusai Europe was the dealer and the trade pays a fixed rate of 0.2% semi-annually. The deal is non-callable and was swapped back to euro.

UK retailer Marks & Spencer (M&S) this week launched a £331m securitisation of the rental income from 59 of its UK retail properties via Morgan Stanley. The company has been considering securitisation since the second quarter of this year. The technique offers a 25 year funding source, which market participants suggest would be difficult for the company to obtain in the unsecured bond market.

Locat, Italy's largest leasing company and part of the UniCredito Group, yesterday (Thursday) launched a Eu1.6bn lease backed securitisation via leads BNP Paribas and UniCredit Banca Mobiliare (UBM), along with Finanziaria Internazionale and Euro Capital Structures. The deal, Locat's second after a Eu400m private placement earlier this year, is believed to be the largest Italian lease backed securitisation. It is just the start of a regular securitisation programme designed to reduce the group's cost of capital.

MBNA International bank, the UK subsidiary of US credit card issuer MBNA, this week returned to its CARDS trust structure with a £250m securitisation. Lead managed by Credit Suisse First Boston, the deal is just the second offering since October from a revised trust set up by MBNA.

The Republic of Italy has begun marketing a Eu2bn-Eu3bn securitisation backed by the sale of commercial and residential property, which is set to be launched around the end of next week. Lead managed by Banca IMI, IntesaBci, Deutsche Bank and Lehman Brothers, the deal will follow the execution of a Eu3bn securitisation of lottery revenues this week led by Banca Nazionale del Lavoro, IntesaBci, Schroder Salomon Smith Barney and UBS Warburg.

Royal Bank of Scotland has launched its first securitisation of leveraged loans, a £300m synthetic issuance backed by around 70 senior secured and mezzanine leveraged loans selected by the bank and made to UK, French and German corporates. Lead managed by RBS Financial Markets, the £28.1m triple-A tranche was priced at 55bp over three month Libor. The £9.8m single-A piece came at 150bp over, while a triple-B tranche worth £9.5m was priced at 265bp over. The £9m double-B piece came at 675bp.

JP Morgan this week launched a Eu540m managed collateralised debt obligation for Barclays Capital Asset Management - Jubilee CDO 1 BV - offering exposure to a pool of leveraged and mezzanine loans. The deal follows JP Morgan's Eu300m synthetic managed arbitrage CDO for Dutch fund manager Robeco Institutional Asset Management launched with Rabobank and Robeco Capital Markets last Friday (November 30), and due to close next week.

The State of Lower Austria this week launched a Eu2.5bn securitisation of state subsidised housing loans granted to individuals, housing co-operatives and local authorities. Few securitisations have emerged from the Austrian market, which is smaller than some of its neighbours.

BNP this week launched two repeat securitisations: CDO Master Investments 2 SA and the third issuance from the MasterDomos fund backed by French residential mortgages originated by Union de Crédit pour le Bâtiment (UCB). CDO Master Investments 2 transfers the credit risk for five years of a £3.75bn portfolio of 105 corporate entities and triple-A rated asset backed securities (ABS) from BNP's own books.

Banca Popolare di Verona this week launched a Eu512.5m securitisation backed by performing residential mortgages. Lead managed by JP Morgan and arranged by UBS Warburg, the deal is the just the first part of a new securitisation programme. A leased-backed deal is expected to follow in coming months.