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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%.

POHANG Iron and Steel (Posco) mandated its anticipated Samurai bond issue to Nikko Salomon Smith Barney and Nomura Securities this week. The Korean steel manufacturer should complete the pricing of the transaction by early to mid-August, according to sources familiar with the deal. "Posco is planning to raise ¥35bn through a three year deal to finance a Samurai bond that the company has maturing in October," said a spokesman at one of the lead arrangers.

QBE INSURANCE Group tapped the markets this week, in a long maturity subordinated issue that provides further proof of the growing diversity and complexity of the Australian corporate debt market. The company made its market debut through a euro and Australian dollar sub debt Eurobond, the first sub debt transaction with a 20 year maturity from an Australian non-governmental institution.

THE Nasdaq IPO of Digital United Holdings continues to struggle. Pricing of the float was due yesterday (Thursday) but has been deferred to Monday. Bankers working on the deal cite inclement market conditions for new issues from Asia, the need for extra time to meet more US fund managers and the release of some new projections. There is the distinct possibility that the issue could be reduced in size or price below the indicated range.