Search results for

St George Bank's $1bn global securitisation of its Australian residential mortgages is on course for launch next week via Credit Suisse First Boston. The deal will test the wisdom of splitting the triple-A portion into fast and slow pay tranches. Some ABS professionals believe this structure carries the risk that unless the shortest tranche is priced exceptionally tightly, it can push out spreads on the longer tranches to maintain a yield curve.

The floodgates opened this week on the wave of large convertible issues that had been expected from markets such as Taiwan and South Korea. The first two transactions of 2001 from north Asia emerged this week in the form of a $175m issue from Acer Communications, arranged by Salomon Smith Barney, and a $200m deal from Quanta Computer managed by UBS Warburg. The smaller $85m Chunghwa Picture Tubes CB was priced late last week. Demand was very strong for the new zero coupon issues and they traded up in the secondary market.

Australia Commonwealth Bank of Australia is raising A$700m through the sale of preferential exchangeable resettable listed shares that are being distributed by bookrunner Salomon Smith Barney, alongside co-lead manager Commonwealth Securities.

Bankers report solid institutional demand for the forthcoming Austereo IPO, but say there is some price sensitivity in the book. The deal looks likely to price in the lower half of the A$2-A2.40 range, because investors believe the company might be near a cyclical high in terms of advertising revenue and audience ratings.

Japanese finance company Orient Corp (Orico) is preparing to securitise the subordinated tranches that it retained when it brought its six international securitisations of auto loans - the Oscar series. The concept is a highly unusual one in international structured finance, and the ¥23bn deal, lead managed by Mizuho Securities, will be the first of its kind in Japan.

ORIX New Zealand Ltd, a subsidiary of finance company ORIX Australia Ltd, this week priced the first securitisation in Australia or New Zealand to be backed by the residual value and maintenance risk of auto operating leases. The NZ$98.4m deal was lead managed by Macquarie Finance (NZ), the New Zealand subsidiary of Macquarie Bank.

The Singapore domestic debt market showed signs of revitalisation this week with two companies making debut bond issues. Domestic company Singapore Airport Terminal Services (SATS) arranged a S$200m three year issue from its debut, newly created S$500m medium term note programme, while Bank of America slipped into the market with a S$100m 10 year bond, its first in the Singapore market.

Mirvac Group is preparing to launch the largest CMBS issue to date in Australia. The listed property trust is seeking to totally refinance its bank borrowings, by launching A$500m of commercial mortgage backed securities (CMBS) within the next six weeks.

Hong Kong Standard & Poor's (S&P) has raised Hong Kong's long term foreign currency rating from A to A+, also improving the sovereign ceiling-constrained ratings of companies including Hong Kong Electric, CLP Holdings and Mass Transit Railway Corp to A+.

CSFB has hired two JP Morgan managing directors, Klaus Said, who from 1993 to 2000 ran global exchange and commodities, and Gael de Boissard, who was head of European interest rate trading. De Boissard becomes head of European interest rate products, reporting to Trevor Price, who heads CSFB's rates business.

Credit Suisse First Boston was out yesterday (Thursday) bookbuilding for the sale of a Eu3bn stake in Italian energy company Eni. The company, which is listed in New York and Milan, is 35% owned by the Italian government. "It has been rumoured for a while the government was going to try and offload 5%," said Alastair Syme, an oil and gas analyst at Schroder Salomon Smith Barney in London. Yesterday, it happened. "They probably saw the share price," he added, "and knew that oil prices cannot stay so high for long, and decided they would monetise a bit of that now." Eni stock reached a 12 month high on Wednesday of Eu7.26.

* GMAC International Finance BV Guarantor: General Motors Acceptance Corp