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Non-conforming mortgage lender Southern Pacific Mortgage Ltd this week launched a £350m securitisation backed by first and second lien sub-prime mortgages. Lead managed by Lehman Brothers and ABN Amro, the deal marks the first securitisation to come from Southern Pacific since it was restructured with a capital injection from Lehman Brothers in January 2000. It still retains an interest in the group.

ScottishPower, the UK based electricity company, this week announced plans for a £1.9bn refinancing of its subsidiary Southern Water Services, using techniques based on securitisation. Credit Suisse First Boston will lead manage a £1.8bn bond issue by the end of March 2002, which along with £100m of existing debt will be ringfenced in Southern Water, which is one of the 10 main regional water utilities in England and Wales.

Tenovis GmbH & Co KG, a leading provider of business communications solutions in Germany, has launched the first rated German term securitisation to use a secured loan structure, with a Eu300m transaction. Lead managed by Morgan Stanley and Schroder Salmon Smith Barney, Tenovis Finance Limited issued a single tranche of notes rated A2 by Moody's and A+ by Standard & Poor's. It was priced at 150bp over three month Euribor. "Pricing was in the range we'd expected and many people were intrigued by the deal," said Steve White, ABS syndicate official at Morgan Stanley in London.

* Morgan Stanley has begun marketing the eighth deal from its European Loan Conduit (ELOC) programme, a £545m deal expected to be priced in around two weeks. A £434m triple-A piece will be issued above a double-A tranche worth £38m and a single-A piece worth £31m. A triple-B piece of £28m is also planned with a £14m single-B tranche. All have average lives of five years and a seven year final maturity. Notes are backed by 10 loans on 49 properties in the UK.

Deutsche Bank plans to hire up to five new structurers and sales professionals for its London-based structured products group as the current volatile global equity markets fuels demand for equity-linked notes. Johan Groothaert, managing director and head of equity structured products and alternative investments in London, said the bank currently has a team of roughly 50 staffers in the structured products group and is overstretched. He added he is looking to add the personnel in the new year.

Singapore-based OCBC Bank plans to offer equity derivatives, credit derivatives and exotic interest-rate and currency derivatives for the first time next year. The bank currently offers plain-vanilla foreign exchange and interest-rate derivatives. Yap Tsok Kee, v.p. of global treasury, said the bank will look to offer and trade the products within six months, after it has dealt with the time consuming integration of Keppel Capital Holdings.

Dealers seemed to breathe a collective sigh of relief Wednesday evening following Allied Waste's third-quarter earnings release as fears of more credit defaults in a soft economy had the market bracing for bad news. Dealers noted that Allied's earnings loss was not as bad as they had expected, and that overall the credit still appears relatively strong. Bids for the paper promptly notched up to 96 1/8-7/8 from the 96 range earlier in the day. An estimated $10 million had traded by late Wednesday. The trash-hauling company is based in Scottsdale, Ariz. Calls to Mike Burnett, head of investor relations, were not returned.

Owens-Illinois' bank debt traded up a few points this week, with the term loan trading at 94-95 and the revolver trading in the 91 range. "The company has had good numbers and is a strong company," a dealer said, explaining the positives for Owens-Illinois. However, the company's asbestos related issues continues to haunt the name. In its third-quarter report, the company noted that improving energy costs, reduced interest expense, and lower fixed costs are continuing to have a favorable impact on the company's performance. Owens Illinois is a glass manufacturer based in Toledo, Ohio. Calls to R. Scott Trumbull, cfo, were referred to the investor relations department and not returned by press time.

An estimated $20 million of Pacific Gas & Electric's bank debt traded in the 93 5/8 range early this week on news of the company's third-quarter earnings more than tripling. The company also reported that its utility unit, which has filed for bankruptcy-court protection, has cash holdings of $4.3 billion. Still, market players remain wary of how the company will hold up as California's economy suffers and questions remain about the stability of future utility rates. Also, San Francisco was voting last week as LMW went to press on whether to create a municipal power district. If approved, PG&E would lose 8% of its customer base. The utility company is based in San Francisco, Calif.