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Both Deutsche Bank and J.P. Morgan are testing new platforms that will enable collateralized debt obligation portfolio managers to execute hypothetical online trades to immediately see if their CDOs pass compliance requirements. The banks are pitching the technology as part of their trustee services to expedite compliance assessment and allow managers in any time zone to interact with the market, reducing limitations currently associated with desktop technology. Deutsche Bank will be the first bank to officially launch its product, iCDO, which is currently being tested by OppenheimerFunds. J.P. Morgan is planning to launch its Web version, internally known as CDO-hypo, by the end of the fourth quarter. Steven Park, director of CDO sales for the corporate trust group at Deutsche Bank, said the firm is working with management at OppenheimerFunds to eventually enable its portfolio managers to execute hypothetical trading online for two of the funds more recent CDOs, HarbourView II and III. "We're working on the development of the product and we're in the process of finalizing a couple of deals on their system," said Bill Jaume, portfolio manager for the HarbourView vehicles. He said other banks acting as trustees offer other systems to CDO managers, but none offer Internet-based systems. Currently, managers must use either desktop technology or contact their trustee to find out such information, which can take anywhere between a half hour and a full day, managers said. One portfolio manager said the systems should help save time. "It will be especially helpful when working on something like a swap. You won't spend a lot of time working on it to find out it won't fit in the portfolio's requirements." The manager explained that a CDO is a moving target as the collateral can be upgraded or downgraded or debt can be paid down, making an up-to-date Web-based technology useful. Andy Tuck, spokesman for J.P. Morgan, said the firm has a couple of clients also signed up for testing. Currently, the firm offers clients password-protected access to information on their deals and compliance information. But this will be the first product to allow managers to log on and hypothetically make a trade, providing information on whether or not the trade will pass compliance before placing a call to the trustee. Bank of New York, the other largest trustee player in the CDO market, is not planning on launching an Internet-based product anytime soon. Richard Constantino, senior v.p. of the structured finance group, said the bank provides its clients with CDOnet, a product provided by Wall Street Analytics, a desktop-based program that runs compliance tests but needs to be installed on a user's computer.

Ford Credit Australia, the US car manufacturer's Australian financial subsidiary, this week launched its second car loan securitisation with a A$368m issue, via Credit Suisse First Boston (CSFB). Although car loan securitisations are less liquid than property deals, the issue achieved a spread close to those of Australian residential mortgage backed securities (RMBS).

United Overseas Bank Limited (UOB) wowed investors this week with a S$1.3bn 15 year non-call 10 subordinated debt issue which was increased from S$750m due to exceptionally heavy demand. JP Morgan, Merrill Lynch and UOB Asia were the joint bookrunners for the transaction, which qualifies as upper tier two capital under Monetary Authority of Singapore (MAS) guidelines.

Australia JB Were was in the market after the close of trading in Sydney yesterday (Thursday), selling 24m shares in Coca-Cola Amatil on behalf of Singapore drinks company Fraser & Neave (F&N). A senior JB Were official confirmed that the bookbuild was taking place with a floor price of A$5.05 after the Coca-Cola Amatil stock closed at A$5.37. The issue was not underwritten.

Nomura Research Institute is set to list on the Tokyo Stock Exchange on October 2, despite the continued declines in the Japanese market, which this week hit a new 17 year low. Nomura Securities, which directly controls 5% of the institute, is sole bookrunner and sole global co-ordinator. Several other large IPOs and secondary market placements are also in the market. The main business of Nomura Research is systems integration for the finance sector and retail companies. That accounts for 85% of revenue, which in the year to March 31, 2001 totalled ¥217bn ($1.8bn). Its other main activity is consultancy and economic research. Nomura Research was founded in 1965 and employed 2,700 people in nine offices around the world as of March.

Senior bankers have confirmed that the pulled equity placement for Australian Magnesium Corp (AMC) might be resuscitated. Bankers said that if talks with potential cornerstone investors were concluded successfully, a scaled down issue of around A$500m might emerge within a couple of weeks.

The Federal Reserve Board duly cut short term rates by another 25bp on Tuesday. The statement accompanying the announcement once again highlighted the dangers of prolonged economic weakness, thus paving the way for at least one more rate cut before the year end. Two year Treasuries again tested the historic low in the wake of the latest ease, while 10 year swap rates also came in to below 5.75%. Swap spreads were less affected, though they too drifted tighter later in the week. At the close yesterday (Thursday), the five year mid-market was 76.5bp and the 10 year midmarket was 84.5bp.

BNP Paribas says it has reached "critical mass" in its European equity research business with the hire of five analysts this week. The most senior hire is Philippe Schmitt, who becomes sector head for IT hardware, part of the technology team led by Patrick Shields. Philippe joins the London office from Lehman Brothers, where he was head of European telecoms equipment research.

India Arrangers ANZ Investment Bank, Citibank/Salomon Smith Barney and Standard Chartered will sign in the banks on the syndication of the $250m loan facility for Reliance Petroleum today (Friday) in Kochin.

ING Barings has hired a senior credit salesperson as part of its continuing drive to rebuild and restructure its high yield operations in London. William Franklin has joined as a director of credit sales, reporting to the head of credit sales, Paul Brown. Franklin will sell European high yield and emerging market credit to UK-based accounts.

Brazil Banco Santander Brasil is in the market with a $100m two year trade related loan via mandated arranger Bank of America.