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Trading books as well as debt portfolios of banks are exposed to a huge number of factors driving their mark-to-market value.

If financial markets behaved in the way assumed by the Black-Scholes option pricing model, crashes would never happen.

Hong Kong For the Asian equity market, the year 2000 had an eventful beginning with a record high followed by a wave of selling in Hong Kong, while a decision on IPO running order from the China Securities Regulatory Commission was eagerly anticipated by bankers.

* Cho Hung Bank is taking bids on its first senior debt issue of the year, a $200m one year FRN. Proposals for the deal are due by January 12, with the Ba2 rated bank on course to rank as the last Korean borrower of 1999 and the first of 2000. At the beginning of December, the bank raised $100m in lower tier 2 debt via Credit Suisse First Boston in a bid to meet end-of-year capital ratios set by the Korean government. With a January 2005 maturity, the issue was priced at 99.81 with a coupon of 495bp over six month Libor to yield 500bp over.

SALOMON Smith Barney will launch a $200m Nasdaq and Singapore listing for ST Assembly Test Services (STATS) on Monday in a deal that the bank hopes will repeat the success of Chartered Semiconductor during the last quarter. The Singapore Technologies spin-off hopes to tap the investor enthusiasm that generated a 16 times oversubscription for Chartered.

GE CAPITAL Australia kicked off fundraising in the domestic bond market this week with the launch of an A$300m deal via Salomon Smith Barney. The 2-1/2 year deal is the group's fourth domestic deal to date and brings its outstandings up to the A$1.6bn mark, making it the third largest domestic issuer behind Telstra and Commonwealth Bank of Australia (CBA). But as a foretaste of the roughly A$6bn that GE Capital is planning to raise in the domestic market this year, bankers said that the group could soon become the market's largest benchmark issuer.

MERRILL LYNCH plans to list Pacific Dunlop subsidiary Ansell Healthcare on the New York Stock Exchange, raising $175m for the Australian group. The condoms to rubber gloves manufacturer will not list domestically because of the international nature of its business, say bankers. The majority of both manufacturing and sales are overseas, with the US dominant.

Credit Derivatives in various forms have been used by the interbank market for a number of years.

DAIMLERCHRYSLER is to be the first US corporate of the year to issue a jumbo corporate global bond with a $2.5bn to $3bn multi-tranche offering due for pricing next week. The transaction, to be led by Deutsche Banc Alex Brown and Goldman Sachs, will have five and 10 year tranches and bankers hope it will kickstart what has been a slow beginning to the new year for corporate bonds denominated in

* Deutsche Bank - DB Ireland plc Guarantor: Deutsche Bank AG (London)

HOPES FOR a strong beginning to the new year in the US dollar market for emerging market issuers were deflated this week when Brazil postponed plans for a $1bn 20 year global bond. The republic was planning to issue the bond this week via Goldman Sachs and Chase. But wildly gyrating US equity and Treasury bond prices and the prospect of large emerging market supply sent emerging market spreads gapping out by more than 60bp. The JP Morgan Emerging Market Bond Index Plus (EMBI+) went from 782bp on Monday to 844bp by midday yesterday (Thursday).

Poland Arranger Bankgesellschaft Berlin has signed banks into the Eu100m transaction for Bank Slaski after the popular deal was increased from Eu30m. Many of the participants are new investors in the name, with a wide range of nationalities.