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Canary Wharf Group plc, owner of the Canary Wharf office development in London's Docklands, this week issued its second securitisation of buildings in the complex, using an innovative structure including variable funding notes that could form a new template for commercial property securitisations. Though investors appear to have liked the deal, shaky credit markets denied Canary Wharf the blowout reception that greeted its first securitisation in November 1997.

FIRST Active Financial plc, the UK arm of Irish bank First Active, this week launched Europe's first securitisation backed by mortgages that are both flexible and secured on buy-to-let properties. Flexible mortgages were pioneered in the UK by First Active Financial and Legal & General, and are now offered by over 40 lenders in the UK. They allow borrowers to prepay their loans without penalty and then reborrow the amount they have prepaid at a later stage.

General Motors Acceptance Corp this week launched the third issue of senior bonds from its European targeted securitisation vehicle GMAC SWIFT Trust 1999-1, which parcels loans to car dealers in the US. As with the trust's first deal in September last year, GMAC took advantage of the tight credit spreads that prevail in the Swiss franc market, selling Sfr850m of three year soft bullet FRNs at a mere 2bp over three month Libor. Lead managed by Credit Suisse First Boston, the Series 2000-1 issue is rated triple-A by all three agencies.

This is the second of three articles regarding a heuristic approach to measuring counterparty credit risk.

This is the first of three articles regarding a heuristic approach to measuring counterparty credit risk.

POHANG Iron & Steel (Posco), the Korean steel giant, returned to the international debt markets this week for the first time since mid-1997, with a ¥15bn three year Samurai issue lead managed by Nikko Salomon Smith Barney. Bankers agreed the deal's size and pricing ensured that most of the investor appetite was limited to the retail sector.

TELSTRA, Australia's dominant telecommunications company, has been trying to entice investors into a major euro denominated transaction - in a week when spreads on its existing bonds widened out dramatically. Telstra is believed to be talking directly to investors, with the help of a number of banks, in an attempt to raise up to Eu1bn. It is unclear if lead managers for any issue have been appointed.

PREMARKETING of the jumbo Vodafone Pacific share placement began this week, despite the volatile global market conditions and the recent adverse sentiment towards Telstra, Australia's largest telecommunications company (see page 1). Bankers report that institutions are enthusiastic about Vodafone Pacific and its management but will be especially sensitive to pricing given the global mark down of telecommunications stocks in recent weeks and the continued concerns over the direction of Nasdaq.

THE Indonesian Bank Restructuring Agency (IBRA) has completed the international institutional placement of 22.5% of Bank Central Asia, which is due to list on the Jakarta and Surabaya stock exchanges on May 31, following a domestic offering set to take place between May 19 and May 23. Bankers hope the backing for the first privatisation since the Asia crisis of 1997 indicates the support that the international investment community has for the political and financial reforms taking place in Indonesia. The issue was more than twice covered.

* Nomura has reinitiated a placement for OTC listed InterQ that will raise about ¥14.4bn. Half the shares are from the sale by founder and president, Masatoshi Kumagai, and half are new shares. The issue will be divided between 200,000 shares for the Japanese market and 440,000 shares for the international institutional offer. The discount is indicated at between 2% and 4% and final allotment and pricing will take place between May 22 and May 25 following an international bookbuild that began on May 11. Listing is set for June 14. The company provides internet infrastructure services.

* Eksportfinans A/S Rating: Aaa/AAA

SLOVAK state railways company ZSR provided this week's only emerging market action with a Eu125m seven year issue on Monday, which left bankers wondering whether any deal is worth doing in such dire market conditions. ZSR had to reduce the issue from a planned Eu200m and had to increase the spread by 15bp-25bp from the early pricing talk to execute the deal.