GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • Dresdner Kleinwort Benson and Merrill Lynch will learn today (Friday) whether their scheme to buy and repackage the distressed junior bank debt of Eurotunnel has reached the critical mass needed to proceed. The arrangers have put back the schedule by a week, in a bid to win more interest for the tender.
  • Goldman Sachs is believed to be structuring a $129m catastrophe bond for French insurer AGF to securitise the risk of windstorms in France and an earthquake in Monaco. Mediterranean Re, an SPV in Ireland, will offer a $41m tranche rated BBB by Standard & Poor's and an $88m class rated BB+.
  • The Italian government's Eu1.35bn securitisation of contributions to INAIL, the state agency that provides insurance against industrial accidents, was priced last Friday at 30bp over six month Euribor - the wide end of a 28bp-30bp range. However, the deal was oversubscribed by around 25% and, given the poor reception for Italy's Eu4.65bn INPS securitisation a year ago, stands as an unqualified success for the republic's securitisation programme.
  • Paragon Group, the UK consumer lender and regular ABS issuer, last week launched its euro debut, a mixed auto loan and second mortgage securitisation via Société Générale. The lead said investor demand for the senior Eu285m tranche was high, with future euro issues likely. The two sterling tranches were also fully subscribed.
  • Pubs are already the largest sector of the UK whole business securitisation market, but 2001 issuance may break all records as the country's brewers plan to dispose of pubs worth over £4.5bn. With Bass, Whitbread, Wolverhampton & Dudley, and Scottish and Newcastle all likely sellers, principal finance groups, pub companies and securitisation specialists are eyeing each other nervously.
  • Förvaltnings AB Framtiden, a municipal housing company owned by the City of Gothenburg, this week issued its first securitisation in euros via Skandinaviska Enskilda Banken. The Eu300m deal is backed by five year loans to Framtiden's three main multifamily housing subsidiaries, Bostads AB Poseidon, Göteborgs Stads Bostads, and Familjebostäder i Göteborg. The loans are secured on 178 purpose built modern apartment buildings in Gothenburg.
  • Global fixed income markets are undergoing fundamental changes due to the growth in credit markets and a fast dwindling supply of sovereign paper. In turn, investors are increasingly needing to address the question of whether traditional benchmarks are suitable measures of performance.
  • German mutual funds manager Deka Investment Management has grown into a major investor in the credit markets over the past two years and with that, has come the need to select an appropriate set of indices against which to measure itself. In 1999, Deka went shopping for an index to do the job.
  • The race to be index provider of choice in the European credit market is up and running, with Lehman Brothers, Merrill Lynch and Salomon Smith Barney regarded as leading the field. But new entrants to credit market index provision are placing their hats in the ring - among them, JP Morgan.
  • Index providers deliver an invaluable service to investors, but what is in it for them? The profits generated by a bank's index group are difficult to quantify, but there are plenty of good reasons for being in index provider. Running an index is hard work, but there is ancillary business to be done.
  • From the perspective of how they are structured, credit indices are united by their differences. But it is the diversity of investor preferences that makes for such an array of contending product. Some investors want their credit index to be liquid, while for others, all-inclusive product is the key.
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