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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  • Irish bank First Active launched its fifth securitisation of Irish mortgages this week with a Eu300m deal through Celtic Residential Irish Mortgage Securitisation No 5 Plc. The deal, lead managed by BNP Paribas with Deutsche Bank as co-lead, found 80% of its investors in continental Europe, including buyers from the Netherlands for the first time.
  • Lemy Gresh, managing director and head of structured securitisations at Deutsche Bank in London, will leave the bank next week in an amicable separation. As foreshadowed in EW 637, the structured securitisation team will merge with Deutsche's main European securitisation group, led by Tamara Adler.
  • Banco Bilbao Vizcaya Argentaria this week launched the first collateralised loan obligation from a Spanish bank to be sold in the term market. Joint bookrunners BBVA and Goldman Sachs priced the Eu1.113bn deal on Wednesday and will allocate bonds today (Friday).
  • UK property company Peel Holdings Plc broke new ground this week with a £610m securitisation of its Trafford Centre shopping precinct on the outskirts of Manchester - effectively Europe's first securitisation of retail commercial property. The audacity and glamour of the deal recalled the Canary Wharf securitisation in 1997 and last year's Broadgate transaction, each of which parcelled cashflows from a single piece of real estate of exceptionally high quality.
  • UK mortgage and consumer finance company Paragon Group Plc launched a £185m securitisation of buy-to-let mortgages this week via ING Barings-BBL. Paragon Mortgages (No 2) Plc is the company's second deal since it rebranded its securitisation programme in June 1999. It was marketed to investors in the UK and Europe and had a high take-up rate despite the relative novelty of the asset class.
  • * Morgan Stanley Dean Witter will likely launch its Eu400m securitisation of non-performing mortgages for Banco di Sicilia late next week. Island Finance (ICR 4) SpA will be the first deal backed by Italian NPLs to achieve a triple-A rating, and is believed to have attracted good interest from investors.
  • The factors that contribute to a bond futures valuation versus the bond curve have different impacts on the future pricing versus the swap curve.
  • * Korea Power Corporation (Kepco) is expected to award mandates as soon as next week for a proposed $500m bond offering, making it the first of Korea's mainstream borrowers to tap the market this year. The utility has previously expressed a preference for five year dollar funds. Because of its impending restructuring, the company is prevented from incorporating any government ownership clauses in bond documentation and has not yet made the necessary amendments to its existing programmes.
  • Bank of Western Australia launched its first international securitisation this week with a $640m mortgage backed transaction lead managed by Warburg Dillon Read. The deal was the first Australian MBS in the Euromarket since last October, and investors snapped it up. The shortage of supply enabled WDR to reverse some of the spread widening that affected the sector last year.
  • UNION BANK of Hong Kong has become the first of the territory's banks to try and solve its Chinese non-performing loans problem through the creation of a wholly owned asset management company (AMC). With Merrill Lynch acting as financial adviser, the medium sized bank said yesterday (Thursday) that its entire Chinese bad loan portfolio would be transferred to a British Virgin Islands incorporated AMC at net book value and funded through the issue of HK$1.884bn in senior and junior notes priced at par.
  • Australia Nasdaq listed internet directory company LookSmart Ltd is preparing to list on the Australian Stock Exchange on February 23.
  • THE irrepressible rise of technology stocks on the Hong Kong Stock Exchange moved up another gear this week, with Pacific Century CyberWorks leading with a $1bn blow-out placement. Crédit Lyonnais Securities Asia (CLSA) also raised $93m in a top-up placement as a bought deal for internet portal developer e-Kong Group Ltd. ABN Amro secured $40m for Sino-i.com. Exciting IPOs are also close to the market, including Tom.com, SUNevision and Sunday Communications.