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Morgan Stanley Dean Witter will today (Friday) price its fifth and largest securitisation of Italian non-performing loans, selling Eu705m of bonds backed by the Eu1.442bn portfolio of NPLs it bought from San Paolo IMI in March. International Credit Recovery (ICR5) Srl was launched this week, offering five tranches of bonds rated by all three agencies. The deal is the largest ever securitisation of NPLs apart from Banca di Roma's Trevi 2 transaction, and is the first to include a cross-currency tranche.

Dutch mortgage lender Bouwfonds Hypotheken launched its first independent securitisation this week with a Eu200m deal sole managed by ABN Amro. Bouwfonds Hypotheken is the mortgage arm of Bouwfonds Nederlandse Gemeenten, a company set up by Dutch municipalities to promote post-war housing reconstruction and home ownership, and acquired by ABN Amro in December.

IFCO Inc, the domestic finance arm of Japanese motor manufacturer Isuzu, returned to the Euromarket this week for its second securitisation, issuing $182m of bonds through sole manager DKB International. Forest Funding Corp II issued a single tranche of bonds backed by over 14,000 loans to buyers of sports utility vehicles and small commercial vehicles.

The Korea Asset Management Corp, the government agency charged with clearing up South Korea's bad loans, launched its first international securitisation this week to a rapturous reception from investors. The structure of the $367m deal, lead managed by Deutsche Bank and UBS Warburg, meant that most of the risk is covered by state owned Korea Development Bank. The transaction was therefore seen as a close proxy for direct exposure to KDB, one of Asia's bellwether credits, with a spread pickup.

Commerzbank launched its first public securitisation this week - the largest ever German MBS. The deal parcels Eu2.5bn of first lien (68%) and second lien mortgages - 41,500 loans in total, using a synthetic structure without an SPV. Eu1.5bn of the transaction was placed as a super-senior credit default swap with an OECD bank, with the rest sold as Eu1bn of FRNs rated triple-A, single-A and triple-B by Fitch and Standard & Poor's. The Eu40m first loss piece was privately placed under Commerzbank's own AA- ratings, thanks to its protection by a sub-participation of interest on the reference portfolio. (See bonds section for full structure.)

Initial margin is now more important than ever to participants in the over-the-counter derivatives markets because it touches many areas of the transactional process including marketing, credit, legal, operations and funding.

CHINA Merchants Holdings is tapping the markets for a dual tranche transaction with $150m. The issue consists of an FRN and transferable loan certificate issue. The deal is for five years with a three year call/put option, and is priced at par, with a coupon of 160bp over six month Libor.

SOUTH Korea's leading internet portal company Daum Communications Corp succumbed to investor disinterest in Asian internet stocks and postponed the planned Nasdaq listing and sale of 10m shares. Lead managers Credit Suisse First Boston and Merrill Lynch were due to price the deal on July 18 following a roadshow that began on June 29. The withdrawal of the offer is a further example of just how little institutional demand there is for new equity issues from Asian new economy stocks.

Australia UBS Warburg arranged the successful placement of 42m units in Macquarie CountryWide Trust following a bookbuild that raised A$59m. Macquarie CountryWide thus became the latest in a series of property trust companies to tap the local and international markets. Property trust stocks offer a defensive yield and are less volatile than most companies trading on the market.

INDICATIONS of improving strength in the domestic primary debt market were underlined by a Kangaroo issue from Jackson National Life Funding and a domestic reopening from Australian retailer Coles Myer. The aa3/AA rated Jackson National Funding, the financing division of US-based life insurance company Jackson National Life, issued a A$400m deal with a four year maturity which was increased from A$300m. Of this, A$175m was issued as a fixed rate tranche with a coupon of 7%, which was priced at 42bp over the semi-annual swap, or 90bp over the government bond.

ASIA Global Crossing has filed with the Securities & Exchange Commission ahead of its planned Nasdaq IPO. The company wants to sell 53m new shares as well as a 7.95m share greenshoe. The initial filing range is $14-$16. At $15, the issue would raise more than $900m, implying a capitalisation of more than $8bn. Microsoft and Softbank are two of the core shareholders. Goldman Sachs and Salomon Smith Barney are joint bookrunners. The deal is likely to be launched soon.

THE Japanese government will announce the winners of the more than $13bn NTT6 share issue on August 11. The deal is slated for launch in early October. The Ministry of Finance (MoF) this week sent out invitations to about 70 domestic and international securities firms, which must submit their applications by July 28. The government is selling 1m shares to cut its holding in NTT to 47% from 53%.