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While mortgage banks have been responding to growing European competition from foreign banks and regulations, Rheinische Hypothekenbank last month used a novel securitisation to boost its international ambitions. Alongside lead manager Barclays Capital, Rheinhyp launched the first euroland securitisation of commercial mortgages, a Eu1.345bn eight tranche deal called Europa One.

WHILE mortgage banks have been responding to growing European competition from foreign banks and regulations, Rheinische Hypothekenbank last month used a novel securitisation to boost its international ambitions.

SALOMON Smith Barney has been tidying up its M&A group just three weeks before the expected completion of its merger with Schroder. It has also managed to lure an ex-Schroder employee back to investment banking after a gap of three years.

ROMANIA has been taking bids this week from banks on an up to Eu300m bond issue with a tenor of between three to five years. The country is eager to re-establish a sound benchmark in the international debt market after its first issue since 1997. But bankers warn it will not be easy. "It will be a difficult trade," said one banker. "Even in a strong market it would have to pay up. Right now I can't see it having a chance."

Denmark The Eu50m five year revolver for Roskilde Bank, arranged by LB Kiel, has been wrapped up. It was oversubscribed and will be increased to Eu72.5m when it is signed at the end of April.

* Rabobank Nederland NV Rating: Aaa/AAA/AAA

One of the winners of Spain's five new UMTS licenses, Retevisión Movil, is tapping the loan market for a performance guarantee facility. The deal's launch is imminent. The borrower is looking for a loan worth just over Eu1.9bn, and has enlisted five arrangers to underwrite the deal. They are Ahorro Corporacion Financiera, Barclays Bank (documentation), BSCH (domestic bookrunner and agent), Commerzbank (information memorandum) and SG (international bookrunner).

After years on the offensive, German mortgage banks are being forced on to the back foot. While issuers of obligations foncières in France are offering investors liquid alternatives, mortgage banking associations across Europe are preparing proposals that could neutralise the competitive advantages that the German Pfandbrief market has long enjoyed. Most immediately, mortgage banks face a threat from Luxembourg-based entities exploiting greater freedom in their collateral pools. Philip Moore investigates the pressures on German mortgage banks and how they are responding.

Not only did dollar swap spreads penetrate yet new highs this week, but the market traded in a very wide range. The top of the market was about 143bps over the 6.50% February 2010 Treasury, while yesterday (Thursday) it was testing new lows at around 127bps over the note. Mid-week, the mid-market at five year swaps was more than 100bp over the 5.875% November 2004 Treasury. Some New York traders suggested that this extreme volatility had left blood on the streets. But although it is inevitable that swings of this magnitude will leave some houses on the wrong side of the market, the scale of the losses is a matter of debate.

Against initial expectations, the record breaking jumbo for Pacific Century CyberWorks (PCCW) will not go to general syndication. After a highly successful syndication, the four co-ordinating arrangers have brought in 27 local and international banks, taking the total raised from the market to more than $22bn. With this level of oversubscription, a second round of syndication is not necessary, as banks have been cut back to below their intended final takes.

THE ITALIAN region of Abruzzo this week signed a Eu500m Euro-MTN programme and launched its inaugural Eu129m issue. Merrill Lynch and Cofiri SIM are programme co-arrangers and were joint lead managers for the issue. In the past, Italian regions have obtained funds from the Cassa dei Depositi e Prestiti (CDP), a department of the central government that provides loans for municipalities. But Italian regions are now tapping the capital markets because of the greater range of financial instruments and flexibility on offer.

The $100m one year term loan for African Export-Import Bank was signed this week with an oversubscription. The borrower chose to stay at the launch amount, scaling lenders back. The arrangers are DG Bank, KBC Bank, RZB, Standard Chartered, WestLB and WGZ Bank.