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  • Nomura this week launched an innovative Eu1bn securitisation backed by Swedish residential mortgages for Sveriges Bostadsfinansiering AB, the Swedish National Housing Finance Corp (SBAB). The deal, oversubscribed by euro investors, was unusual in that it also offered a yen tranche. European securitisations rarely offer paper in yen, while soft bullet bonds with long legal maturities are still relatively unfamiliar in Japan.
  • Uncertainty about the Dutch government's proposed changes to the tax treatment of securitisations played havoc in the market this week. The two most recently issued deals, SNS Bank's Hermes II and DBV Levensverzekeringsmaatschappij's Holland Homes closed on schedule, but SNS Bank had to abandon its planned sale of a subordinated tranche, fearing that the tax changes could leave the deal with a cash shortfall.
  • Merrill Lynch this week launched the first collateralised debt obligation for a Portuguese borrower with a Eu286m securitisation of investment grade Eurobonds for Banco Comercial Português. The deal found a warm reception from investors and was oversubscribed well inside the lead's initial price expectations.
  • RFC Mortgage Services Ltd, the UK non-conforming mortgage lender owned by GMAC's Residential Funding Corp, this week launched a £180m securitisation using a credit enhancement structure unique to the UK. Lead managed by Deutsche Bank, the deal offered two triple-A tranches wrapped by triple-A rated monoline insurer Ambac.
  • The Eu1.35bn securitisation of insurance premiums owed to INAIL (Istituto Nazionale per l'Assicurazione contro gli Infortuni sul Lavoro), the Italian agency that provides compulsory insurance against industrial accidents, will be launched late next week. The lead managers will be Banca di Roma, BNP Paribas, JP Morgan and Mediocredito Centrale.
  • Lehman Brothers this week launched its £84m securitisation of 13 theatres in London's West End for the Really Useful Theatre Group (RUT), that is owned by the composer Andrew Lloyd-Webber and Bridgepoint Capital. The deal brings a new and colourful asset class into the European securitisation market, but one that is unlikely to be repeated more than once or twice, since there are few theatre portfolios of the necessary size and quality.
  • Caledonian Environmental Services plc this week raised £63.6m to finance construction of a waste water treatment plant in Fife, Scotland by securitising its 40 year contract to build and run the facility. RBC Dominion Securities arranged the deal, wrapped by MBIA Assurance SA, with RBS Financial Markets as joint bookrunner.
  • UK non-conforming mortgage lender Mortgages Plc successfully launched its second securitisation this week, adding to the heavy sterling sub-prime flow with a £220m deal. Mortgages Plc is the fifth largest lender in the sub-prime market and the deal follows recent issues by Platform Home Loans, RFC Mortgage Services Ltd and Kensington Mortgage Co, with igroup limited expected soon.
  • October was yet another landmark month for Pacific Century CyberWorks. Its heavily renegotiated alliance with Telstra was signed, and it set about raising US$1.8 billion in new funds. But where this company once attracted interest for its vision and enthusiasm, it is now noted for infuriating its investors. By Chris Wright
  • The US market still represents the largest and most liquid source of equity funds, and figures show that Asian issuers are increasingly getting the message.
  • China Mobile, the incumbent mobile operator in China, set a new record for mainland companies tapping the global equity markets in October, raising US$6.7 billion. “It has become the most valuable company in non-Japan Asia,” says Andy Xie, regional economist at Morgan Stanley Dean Witter.
  • October was yet another landmark month for Pacific Century CyberWorks. Its heavily renegotiated alliance with Telstra was signed, and it set about raising US$1.8 billion in new funds. But where this company once attracted interest for its vision and enthusiasm, it is now noted for infuriating its investors. By Chris Wright