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Trans World Airlines' bankruptcy and acquisition by American Airlines could affect seven aircraft operating lease securitisations as well as a private ticket receivables deal launched by TWA in 1997. The beleaguered airline filed for a Chapter 11 bankruptcy on Wednesday and agreed to sell its assets to American for around $500m. American has committed $3bn to fulfil lease assumptions and will also provide $200m in debtor-in-possession financing - allowing TWA to keep operating until the sale is completed.

What would have been the Neuer Markt's first IPO of the year was postponed this week when United Business Internet Solutions decided not to go ahead with its 1.7m share issue. Another company, however, has taken on the challenge and may provide the first IPO of 2001 on the high growth exchange. UBIS's IPO was planned for January 22, but has been postponed because "the market is in a disastrous situation", according to Jurgen Schoenberger, a spokesman for the company. "We do not have the investors we want."

The loan backing the sale by Tomkins of Rank Hovis McDougall to Doughty Hanson will be launched at the end of this month. Lead arranger JP Morgan has worked on the securitisation of certain products of Rank Hovis McDougall. Until the launch of the securitisation the debt is held among four banks.

Globals * Citigroup Inc

* Bancaja International Finance Ltd Guarantor: Bancaja

Volkswagen has done its second Polish zloty trade in one month: a Z100 million 3-year note, which pays a final coupon of 15.20%. The trade comes during a tough time for the automotive sector. Albrecht Moehle, head of capital markets at Volkswagen Group, says: "The troubles of the big three have destroyed our margins. The difference for Volkswagen is that we do not need the money. The big players often come to the market but we will not pay 77 bps for a 3-year floater. Nevertheless we are happy with our deals in 2000 but there is no doubt that in our industry it is getting more difficult to achieve your levels."

Volkswagen has increased the limit of its euro1.5 billion ($1.42 billion) debt issuance programme to euro3 billion. The programme has $1.24 outstanding off 17 trades.

Volvo is to sign a $1 billion Euro-CP programme in the middle of February. SEB Debt Capital Markets is the arranger and the dealers are Citibank, Lehman Brothers, UBS Warburg and the arranger. It will replace its existing $1 billion Euro-CP. Barclays Capital and Credit Lyonnais, both on the old programme, are the two dealers not to make it onto the new panel.

Vorarlberger Landes- und Hypothekenbank (Vorarlberger) has done a euro600 million ($571.2 million) benchmark trade off the revived Pfandbriefstelle set-up which offers investors a wide choice of guarantors. The deal was led by Credit Suisse First Boston and has a coupon of 3m Euribor flat. The issue price was 99.88% and it has tenor of five years. Markus Seeger, part of the treasury team at Vorarlberger, says: "We saw good demand at the end of 2000 for this product and so decided January would be a good time to do the benchmark issue. Structures will have to wait though, as we have to take this format to investors step-by-step." The issuer also did a five-year Z100 million ($24.30 million) trade via Deutsche Bank. It has a coupon of 12%.

Warburg Pincus is to take a 42% stake in investment management firm New Flag Asset Management, investing Eu6.7m in the company. New Flag, which was founded by Pierre Oliver-Masmejean and Anton Simon in 1998, is one of only a couple of asset managers dedicated solely to the European high yield markets. Anton Simon told EuroWeek that Warburg Pincus's involvement will make an important contribution to New Flag's standing in the market. "We have the skills and 36 years of experience between us in investing in high yield," he said, "but for institutions that do not know us, Warburg Pincus is an institutional backer of huge repute and will therefore give us a lot of credibility."

After a quiet start to 2001, the bond markets exploded this week as triple-A rated borrowers and emerging market sovereigns sprang into action. DaimlerChrysler stole the limelight by attracting over $25bn of orders for a $7.1bn multitranche issue in dollars, euro and sterling, proving that investors are still prepared to buy beleaguered corporates if the price is sufficiently cheap.