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HSBC Bank is preparing to launch its first collateralised loan obligation, parcelling $850m of loans, 80% of them to UK corporates. The floating rate deal is expected to have a five year maturity, and will be lead managed by HSBC Markets. Clover Funding No 1 plc will use an innovative structure combining the UK trust technique first employed on Sumitomo Bank's £1.395bn Aurora Funding transaction, launched in April 1998, with US style master trust technology.

KDB Capital Corp, the leasing arm of Korea Development Bank, this week launched only the second public term securitisation of South Korean assets to be sold to international investors, with a $101m transaction lead managed by Crédit Lyonnais. Securitisation began to take off in Korea at the end of 1998, but so far most of the deals have either been backed by offshore assets, or sold in won to domestic investors.

US credit card issuer MBNA made a lightning raid on the dollar ABS market this week, as Lehman Brothers launched a $1.5bn five year floating rate deal. The deal was prompted by large reverse enquiry orders from two or three US investors. Launched on Tuesday at $1bn, it was increased by 50% the same day as demand flowed in from the wider market.

Cassa di Risparmio delle Provincie di Chieti, a regional bank in the Italian region of Abruzzi, this week launched only the second securitisation of Italian performing mortgages, and the first since Italy's securitisation law came into force in April 1999. In a highly unusual structure devised by lead manager Caboto, the deal packaged two separate securitisations in a single vehicle, Creso 1 Srl - a Eu35.9m transaction backed by performing mortgages and a Eu37.9m deal parcelling non-performing loans.

CIBC World Markets last Friday priced the first Canadian securitisation to achieve the market's favoured semi-annual pay bullet structure with long term amortising collateral, in a $500m auto and motorcycle loan deal for Honda Canada Finance Inc. The Canadian term ABS market is small, with C$5.5bn of issuance in 1999. That is partly because, since the advent a few years ago of bullet deals backed by revolving assets like credit cards and lines of credit from the country's banks, investors have been loath to buy amortising deals. Assets like auto loans have been funded in the ABCP market - Honda alone had chalked up over $2bn of deals before this.

Salomon Smith Barney last week closed a highly innovative club funding vehicle for 29 small US banks, in which each bank issued a 30 year trust preferred security (TRUPS) to a special purpose vehicle, Regional Diversified Funding Ltd. All but one of the TRUPS has the same fixed rate coupon. The vehicle issued $225m of senior bonds rated A+ by Duff & Phelps and A1 by Moody's and $16.702m of subordinated, unrated income notes. Almost all the senior notes have been sold, and the equity was placed with a single investor.

In the last two decades, risk management has expanded its role from "in-house police" to a role concentrating on overall portfolio management.

This is the second part of an article on extreme Value-at-Risk. The first part ran in Derivatives Week's March 6 issue.

THE AUSTRALIAN domestic corporate bond market moved up another gear this week with the launch of the longest dated issue by a triple-B rated credit to date and the marketing of what could become the largest outstanding issue by any Australian entity. The marked step-up in activity is due to a likely supply shortage next month (set to be one of the peak months of the year) when A$3bn-A$4bn of government debt falls due, as well as a consequence of the corporate market's rapid evolution.

Australia * The bookbuild exercise on the sale by IBA Technologies Ltd of approximately 60m new shares and listing on the Australian Stock Exchange will start on March 22. The Australian retail offer closed on Monday, more than a week early, following strong demand.

WHAT A difference a week makes in Hong Kong's volatile stock markets. Shares in Sunday Communications slumped below their public offer price in Hong Kong yesterday (Thursday) as the local market suffered from the three-day fallout on Nasdaq. A total of 242m shares changed hands as the shares initially rose to HK$4.50 in early morning trade and then crashed back to earth in a dismal afternoon session, closing at HK$3.57. The Hong Kong public offer was priced at HK$3.78.

PREMARKETING of the simultaneous Singapore Stock Exchange IPOs of Singapore Airport Services (SATs) and SIA Engineering Company (SIAEC) is in full swing. Merrill Lynch and DBS are joint bookrunners and the syndicate comprises Crédit Lyonnais Securities Asia, Jardine Fleming and Warburg Dillon Read as co-lead managers for the international tranche, with OCBC as co-lead for the domestic public offering.