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  • 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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  • The days when average duration and sector weights comprised the totality of an investor's armoury when managing against an index are long gone. 'Slicing and dicing' and the ability to analyse an index's risk properties in minute detail are the qualities that investors expect from product today.
  • Index product has proliferated in the European high yield market over the past 12-18 months. Almost every investment bank wants a high yield index, it seems - not least for use as an origination tool. One provider stands out according to investors - Merrill Lynch - but others are fighting back.
  • The requirement to assess hedge effectiveness in the Financial Accounting Standards Board's new statement on derivatives accounting, Statement 133, Accounting for Derivative Instruments and Hedging Activities, is critical for qualifying for special hedge accounting.
  • The dual listing of Jitong Communications on Nasdaq and on the Hong Kong Growth Enterprise Market is in premarketing and bankers expect to launch the deal imminently. Joint lead managers Dresdner Kleinwort Benson and Lehman Brothers are selling 71,994,000 shares either as 'H' shares or as American Depository Receipts (ADRs).