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  • The credit markets were hit by the dramatic deterioration in Enron's situation this week, having already shown signs of softness as a result of weaker equity markets and profit taking after the recent rally in spreads. Triple-B issuers tapping the euro market had to approach investors with care as, although accounts remain liquid, the temptation to close books for the year is resulting in an increasingly selective investor base. Nevertheless, several corporates are preparing to brave the market.
  • The first public Portuguese securitisation backed by residential mortgages is expected to hit the market in the week of December 10 when Banco Comercial Português (BCP) launches a Eu1bn transaction. Portugal is one of the more technically challenging countries in which to structure a securitisation and it has produced around 15 ABS deals. But mortgages have never been securitised.
  • Commerzbank has launched the second transaction in the Provide programme established by German government agency Kreditantstalt für Wiederaufbau (KfW) - a Eu1.548bn deal backed by a pool of DePfa Bank's residential mortgages. DePfa plans to continue its own programme with KfW based on the same template as the other Provide transactions. It has named its programme Provide Home and it is looking to eventually complete some Eu5bn of issuance.
  • Czech Republic The $70m one year deal for Czech Electrical Company (Cez) will be closed this week.
  • The Hellenic Republic is preparing a Eu355m securitisation backed by air traffic control revenues. Lead managed by Morgan Stanley, the deal follows the republic's Eu2bn securitisation in October backed by grants from the European Union.
  • Morgan Stanley continued its long-running European Loan Conduit (ELOC) programme this week, with a £547.58m transaction backed by UK commercial mortgages. Coronis is the eighth ELOC transaction and the fourth this year. Six tranches of notes were issued backed by 10 commercial loans originated by Morgan Stanley Dean Witter and secured on 49 properties in the UK.
  • JP Morgan and Goldman Sachs this week launched a Eu684m securitisation backed by secured and unsecured non-performing loans originated by Banca Nazionale del Lavoro (BNL). Ares Finance 2 is the second securitisation of non-performing loans originated by BNL to reach the market this year, following a Eu633m transaction in August called Ares Finance.
  • Schroder Salomon Smith Barney is preparing to launch next Friday a £1.8bn commercial mortgage backed securitisation of commercial properties occupied by British Telecom (BT). The portfolio will comprise around 5,700 properties through which BT operates its fixed line network.
  • Bahrain Arrangers Arab Banking Corporation and SMBC signed banks into the $107m one year deal for Aluminium Bahrain (ALBA) on Friday November 23.
  • South Africa BoE Bank's $100m one year deal is progressing well in syndication. Some $30m has already been raised from three banks that have joined the deal.
  • Norway Arrangers BayernLB and Den norske Bank have launched the Eu50m three year deal for Finansbanken into general syndication.
  • Austria Austrian utility OMV is still to decide which banks will be arranging its new Eu500m facility.