GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • * Liberty Lighthouse Capital Co Rating: AAA/AAA (S&P/Fitch IBCA)
  • SPREAD volatility and equity market gyrations created a challenging background for the few issuers willing to brave dollar markets. The only issuance was global, from US borrowers looking to leverage strong domestic demand and entice European and Asian investors. Most successful at this was Fannie Mae which this week launched a rare seven year benchmark, a $4bn 7.125% March 2007 transaction that enjoyed robust overseas demand, with some 15% of its bonds placed in Europe and 27% in Japan.
  • Austria Merrill Lynch has wrapped up general syndication of the Eu120m senior leveraged debt package backing the recapitalisation of Steiner Industries. Banks were offered a choice of two tickets - Eu15m for a participation fee of 65bp and Eu10m for a fee of 50bp.
  • * KfW International Finance Guarantor: Kreditanstalt für Wiederaufbau
  • RFC Mortgage Services Ltd, the UK non-conforming mortgage lender owned by GMAC's Residential Funding Corp, launched a £225m securitisation this week via Deutsche Bank. The deal's two triple-A tranches, with average lives of one and 4.6 years, priced at Deutsche's intended spreads of 22bp and 42bp over three month Libor - levels that market participants described last week as aggressive.
  • Société Générale this week closed an $81m securitisation for its affiliate Korean French Banking Corp (Sogeko) - the first South Korean term securitisation to be backed by domestic assets but sold in a foreign currency. As such, the deal brings to fruition years of work by Korean banks and lawyers and international ABS bankers, who have striven to get this kind of securitisation rated and sold since before the Asian currency crisis in 1997.
  • UK non-conforming mortgage lender Kensington Mortgage Co made a bold bid to diversify its investor base this week by launching the senior tranche of its latest securitisation in dollars - a first for the UK non-conforming MBS market. Kensington pioneered cross-currency securitisation in the sub-prime market last October, when WestLB sold the senior tranche of its Residential Mortgage Securities 7 deal in euros.
  • Morgan Stanley Dean Witter will today (Friday) price a Eu380m securitisation of non-performing loans for Italy's Banco di Sicilia. Island Finance (ICR 4) SpA is Morgan Stanley's fourth securitisation of Italian NPLs, but unlike the earlier deals, which parcelled loans Morgan Stanley had bought from Italian banks, it is an agency securitisation.
  • * Sofinloc, a finance company owned by Portugal's Banco Finantia, this week launched its second securitisation of car loans, auto leases and long term rental contracts, with a Eu100m deal lead managed by Deutsche Bank. KV Prabhakar, head of asset backed syndication and trading at Deutsche Bank in London, said the deal was the first of many to come this year from Portugal, where the already enthusiastic interest in securitisation has been strengthened by the passing of a securitisation law last year.
  • Australian Mortgage Securities Ltd, the non-bank mortgage financing programme owned by ABN Amro Bank, launched its second Euromarket MBS this week after a high profile roadshow in Europe. A regular issuer in the Australian domestic market, AMS made its international debut last July, in the midst of the spate of Australian MBS that pushed spreads to unprecedentedly wide levels.
  • Risk managers are primarily concerned with the risk of low-probability events that could lead to catastrophic losses.
  • THE AUSTRALIAN bond markets have taken their first steps into the internet revolution with news this week that both Commonwealth Bank of Australia (CBA) and Telstra Corp are laying plans to sell