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First Active Plc, the Irish bank that has become one of Europe's most prolific securitisers in the last 18 months, this week launched the first securitisation of new mortgages originated by its UK non-bank subsidiary First Active Financial Plc (FAF). The £300m deal, lead managed by JP Morgan, is also the UK's first securitisation of flexible mortgages, which allow borrowers to prepay loans without penalty and then reborrow the amount they have prepaid.

* Goldman Sachs this week launched a £108.45m securitisation of UK commercial mortgages for CCF Charterhouse. Goldman would not comment on how the deal had fared, but the sequential pass-through structure comprised £88.9m of senior notes rated triple-A by Fitch IBCA and Moody's, £12.45m of single-A bonds and a £7.1m triple-B class. With a 2.32 year average life, the 'A' note of Paternoster Securitisation No 1 Plc priced at 50bp over three month Libor, while the 4.53 year soft bullet 'B' and 'C' tranches came at 100bp and 225bp over.

The Italian treasury will launch its securitisation of delinquent social security contributions as three triple-A rated FRNs, without a government guarantee. Banks expect to receive a formal invitation to bid for the underwriting mandate today (Friday) or on Monday, with bids due in by next Friday.

Greenwich NatWest this week sold a short term collateralised loan obligation for a financial institution operating in the UK, and inaugurated an innovative MTN programme that will be used for a variety of collateralised debt obligations. Bluebird Funding BV is a special purpose vehicle that has a $10bn MTN programme, as well as the capacity to act as a counterparty in credit derivatives. The multiseller vehicle can buy assets directly, and will issue separate series of notes or other securities for each transaction.

The Black-Scholes model is well known to suffer from various imperfections.

Recently the French government issued a 30-year OATi, an inflation-linked bond (ILB), boosting this nascent French debt sector.

Australia Warburg Dillon Read will launch the bookbuild for Queensland Tab's A$250m IPO on November 9.

Merrill Lynch completed its ¥28.5bn share sale for Japanese pest-control company Sanix this week. The 3m shares were priced at ¥9,500 - a 1.04% discount to the last sale of ¥9,600. A total of 2m primary and 1m secondary shares were sold. A 10 times oversubscription in the domestic tranche led to it being increased from 1.2m shares to 1.3m. The international tranche was subsequently reduced from 1.8m to 1.7m shares.

Finance company Orient Corp reaffirmed the improvement in pricing for international Japanese ABS this week, as DKB International brought the company's fifth Euromarket issue at a tighter spread than its first deal. Orico's first Oscar auto loan securitisation came in February 1998 at 28bp over one month Libor - new issue spreads slipped to 34bp in July 1998 and 60bp in November, before recovering to 44bp over this May.