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NOMURA'S draconian reining in of its international operations finally hit its rapidly expanding Asian empire this week with the departure of its three most senior fixed income directors, as well as a further 20% cull of its 55 strong Asian primary markets team. Most prominent among the departures was that of regional head Stefan Ludwig, who left immediately after his business plan for Asia was rejected by Tokyo. That veto, delivered by new global debt head Hiroshi Toda, reflected the depth of risk aversion of a Tokyo management which last week moved decisively to gather in the reins of power previously held in Nomura's far flung and relatively independent international division.

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THE European loan market was embroiled in controversy this week after allegations over frontrunning emerged. The deal causing the commotion is the Dfl 1.7bn senior credit, lead arranged by Barclays Capital, backing Cinven and CVC's acquisition of Kappa Packaging from KNP BT NV. A large group of banks -- all experienced players in the international syndicated loan market and lenders to the Kappa deal -- allege that one of the senior co-arrangers was engaged in frontrunning while the deal was still in general syndication. As a result, they claim, progress of general syndication was severely impeded.

South Africa Anglogold will early next week mandate a group of about eight banks to arrange a $350m facility. Banks already in the deal are Citibank, Deutsche and Dresdner. Anglogold wants its arrangers to take $50m each.

AKBANK has yet to decide on a strategy for its latest attempt to tap the loan market. However, Euroweek has learnt that the Turkish bank is considering a conventional syndication, rather than a club deal, and that it is inviting five of its closest relationship banks to act as lead arrangers. Last issue Euroweek reported that the bank had been forced to review its plans after failing to attract enough commitments. Last month Akbank went to the market with a $200m 364 day self-arranged credit that carried an all-in price of 100bp over Libor, asking its core banks to commit to a club-style syndication.

INVESTORS returned to the Latin new issue market with a vengeance this week, as the Republic of Argentina issued a $1bn global bond, the first new bond of any size from any emerging market sovereign since Russia's devaluation.

INVESTORS returned to the Latin new issue market with a vengeance this week, as the Republic of Argentina issued a $1bn global bond, the first new bond of any size from any emerging market sovereign since Russia's devaluation. Mexican state oil monopoly Pemex followed with a $600m bond. Both issues were doubled in size, in a clear indication of growing investor confidence in selected emerging market credits. For Argentina, the successful bond confirmed the country's reputation as the most skilful, and sought after, of Latin American sovereign borrowers; Pemex's issue highlighted its status at the top of the region's corporate pile.

The revived bond, delayed from earlier this year, should be marketed immediately after the US Thanksgiving holiday next Thursday.

* GE Capital Canada Funding Co Guarantor: General Electric Capital Corp

BRAZIL'S finance minister Pedro Malan and central bank president Gustavo Franco visited New York this week to bolster investor confidence -- and their presence raised speculation that Brazil is considering a new bond issue. The two officials explained the government's $84bn three year fiscal adjustment programme to US investors and clarified the disbursement schedule for its recently completed $41.5bn IMF-led assistance package. Up to $20bn could be made available to Brazil by early 1999, much greater than market expectations.