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  • New issuance dominated events this week in the sterling swap market. Barclays issued a £275m upper tier two perpetual, callable at 20 years, on Thursday, and was soon after spotted hitting bids at the 20 year maturity, said dealers. This business was sufficient to drive down spreads by some 2bp-3bp on the day, to leave the 20 year market at 108bp-105bp by the close yesterday.
  • BNP Paribas has made a number of changes and hires to its equity capital markets (ECM) group. "During the uncertain period," Howard Jones, global head of ECM, said: "when SG and BNP were both bidding for Paribas there were some departures from Paribas. These recruitments are partly to replenish that loss, but also to build and grow further than the level we were at before."
  • * Valtion asuntorahasto, the Housing Fund of Finland, will launch its fifth securitisation of loans to social housing providers today (Friday) or on Monday, via BNP Paribas, Credit Suisse First Boston and Leonia Corporate Bank. Fennica No 5 plc is believed to have found strong demand and is expected to be oversubscribed. Investors were attracted by the impeccable credit record of the Housing Fund's assets and by the virtual certainty that the notes will be redeemed as bullets on their expected maturities.
  • Nomura began roadshows this week for an innovative Eu1bn securitisation backed by Swedish residential mortgages originated by the Swedish National Housing Finance Corp (SBAB). In an extremely unusual move for a European securitisation, the deal will include a tranche in yen - and it may also become the first European ABS to be distributed on the internet.
  • ABN Amro launched Eu400m securitisation of its Dutch consumer loans last Friday through Amstel Consumer Loan Securitisation Co 2000-1 BV. The deal was structured for specific investors and priced with an unusually low coupon of one month Euribor plus 15bp with an average life of 5.9 years. It comprised a single tranche, rated double-A by all three agencies.
  • Lehman Brothers is preparing to launch an £84m securitisation for Andrew Lloyd-Webber's Really Useful Theatre Group, backed by 13 theatres in London's West End. The deal will refinance a loan made in January by Lehman's principal finance and securitisation group to finance the acquisition of 10 theatres from Stoll Moss Theatres. These venues were added to three owned by Lloyd-Webber's Really Useful Group to form a new company, The Really Useful Theatre Group (RUT).
  • The Black-Scholes model makes the assumption that volatility of the underlying is constant.
  • The phenomenal costs involved in winning 3G licences in Europe have transformed investor sentiment towards telecoms companies and changed the face of the bond markets. But the dynamics in Asia are different. Investors and issuers should take note of 3G, but it isn't going to have the same effect here as it did in Europe. By Chris Wright.