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Banco di Brescia, part of the Banca Lombarda group based in Northern Italy, this week launched a Eu504m securitisation backed by performing residential mortgages. Lead managed by Credit Suisse First Boston, the deal was launched against a backdrop of heavy Italian RMBS issuance, including offerings from repeat issuers such as Banca Monte dei Paschi di Siena and Banca 121, and another debut offering this week from Banca Popolare di Verona.

ABN Amro launched two jumbo transactions this week: a Eu12.5bn synthetic securitisation of its global corporate loans book and a Eu5bn true sale deal backed by its loans to small and medium sized Dutch enterprises. Both are designed to relieve pressure on ABN's balance sheet at the end of the year. Like ABN's first Amstel deal last December, the loan transaction uses two SPVs: Amstel Corporate Loan Offering 2001-1 issued five tranches of notes and a Eu31.5m equity piece; and Amstel Corporate Loan Offering 2001-2 made a Eu10.8bn credit default swap with ABN's asset backed commercial paper conduit. Co-leads were Morgan Stanley and RBS.

Paragon Group, the UK consumer lender known mainly for its non-conforming mortgages, this week launched a £244.7m securitisation backed by consumer and auto loans. Lead managed by JP Morgan, the deal securitises a pool of loans made by Paragon Personal Finance, and unsecured personal loans originated by Universal Credit, the subsidiary of Lloyds, acquired by Paragon.

CDC Ixis Asset Management is considering launching a convertible arbitrage fund next year that will use over-the-counter derivatives and employ three times leverage. Dahlia Marteau, head of alternative fund management in Paris, said CDC is pondering the move to appeal to clients looking to take on leveraged exposure to the sector and is currently studying whether there is the demand.

Rhicon Currency Management, a fund manager with operations in Singapore, Geneva and Toronto, launched its first fund two weeks ago and it will trade over-the-counter foreign exchange options. Peter Jacobson, managing director in Toronto, said the fund's capacity is USD300 million. It is aiming to reach USD50 million within the first six months and USD100-150 million after its first-year results. "We'll use OTC currency derivatives for managing profits," said Christopher Brandon, managing director in Singapore. The firm will use the derivatives for both hedging and taking profits. For example, it may purchase currency in the spot market and when the pair has reached a target price it will sell the currency and purchase short-dated options to capitalize on further gains, while it has locked in some of the profits. However, Brandon continued that the firm will primarily invest in the Group of Seven currencies, mostly in the spot market and will occasionally trade short-dated options.

WeatherXchange, a joint venture between the U.K. Met Office and Umbrella Brokers, has hired Dan Tomlinson, head of weather derivatives at ICAP in London, to expand its marketing and consultancy services. Tomlinson, who started last week, said he will report to Cindy Dawes, managing director in Bracknell, U.K.

Emmis Communications bank debt jumped to slightly above 100 from the 97 range on news of an amended credit facility. Dealers reported two $5 million chunks changed hands. Early this week, Emmis announced financial covenant relief that would last until Dec. 1, 2002. According to the amendments, the company's leverage ratio will be increased to a total of 8.5 times over the next four quarters. Walter Berger, executive v.p. and cfo, stated that the company is committed to reducing its leverage. Calls to his office for additional comment were not returned by press time. Kate Healey, director of media and investor relations, declined to comment.

Despite the turmoil surrounding Enron, Merrill Lynch and Credit Suisse First Boston are plugging ahead with their $2.1 billion deal for Northwest Natural Gas' acquisition of Portland General Electric and one co-manager is said to have committed. A banker at Merrill described it as business as usual, while a CSFB banker said the Enron situation should not have any adverse impact. He added that six institutions have been approached for top-tier roles and this stage of syndication could be completed by year-end, though he declined to name any of the banks approached, the bank that has committed or disclose the up-front fees on offer.

J.P. Morgan, Credit Suisse First Boston, Deutsche Bank and Merrill Lynch are bringing back a reworked bank and bond deal for Collins & Aikman, backing the acquisition of Textron's auto-trim business for sponsor Heartland Industrial Partners. The expectation is that the bond market will be more receptive than in September when the original deal was to be launched. The acquisition, announced in August, was put on the backburner following Sept. 11 and the collapse of the high-yield debt market, explained John Peisner, senior v.p., investor relations for Collins & Aikman. A reworked deal with improved debt to EBIDTA ratios, a reduced price and more stock as currency, is the other major factor that should ensure completion of the financing by year-end, he noted.

Citibank's and Merrill Lynch's planned recapitalization for Paragon Trade Brands has been scuppered after Tyco International agreed to buy the diaper manufacturer for about $565 million in cash plus the assumption of $85 million in debt. A $425 million recapitalization for Wellspring Capital Management was coming to market, said a banker familiar with the proposed loan. But Tyco has stepped in and is unlikely to need any kind of financing, as it is such an immensely capitalized company.

Following a hefty initial public offering and some stellar gains this year, Weight Watchers International is refinancing its bank debt via administration agent Bank of Nova Scotia and lead arranger Credit Suisse First Boston. The company, described in a September 10-Q as significantly leveraged, has improved its profile since a successful IPO in November and is looking to trim its borrowing spread, said a banker familiar with the deal. The company's $418 million IPO tipped the scales as the largest IPO of the month.

Owens-Illinois' bank debt traded up to the 98 ¼-99 range from 97 this week on the lingering rumor of a bond deal. Volume on trades could not be ascertained by press time, but dealers indicate it's small. The debt has moved up from 93 over the month as Owens Illinois was rumored to be among the companies issuing notes to pay down bank debt. There has been no official company announcement, but the debt continues to get boosted on the rumor. "People are willing to trade on that alone," said a dealer. The Toledo, Ohio-based company is a glass manufacturer. Calls to R. Scott Trumbull, cfo, and the investor relations department were not returned by press time.