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BRAZILIAN development bank BNDES is to launch a $750m 10 year structured note issue today (Friday) via Chase Manhattan, according to market sources. Chase refused to comment, but rival investment bankers said the deal was in the offing. It is expected to have a coupon that resets every six months off the Republic of Brazil's 10 year benchmark global bond maturing 2008. That bond is trading at around 470bp over Treasuries from a launch spread of 375bp in April.

BRITISH Gas and Abbey National fell victim to poor conditions in the US Yankee bond market this week, being forced to accept wider launch spreads than they would have received a month ago to get their deals away. British Gas Finance Inc, rated AA-, launched a 20 year $300m offering at 89bp over Treasuries, led by Credit Suisse First Boston. Abbey launched a $500m upper tier two capital perpetual step-up bond offering led by Morgan Stanley Dean Witter and Salomon Smith Barney.

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ANDEAN development bank Corporación Andina de Fomento (CAF) was the only Latin American issuer to brave the Eurobond market this week, offering a Lit200bn three year FRN. With the new issue emerging market still fragile after the recent scares out of Russia and Asia, lead managers JP Morgan purposely kept the deal short, small and in floating rate format to get it away.

THE RECENT volatility in stockmarkets is leading vendors and intermediaries increasingly to execute deals on an accelerated marketing timetable, hoping to minimise the risk of a market downturn during the sale period. Although issuers are keen to secure the certainty provided by bought deals, few banks are willing to take hard underwriting risk in the current environment. As a result, lead managers are instead speeding up the offering process to protect the underlying stock.

DAVID Bonsall has taken a team of 20 asset backed professionals to set up an international securitisation group at CIBC Wood Gundy. Until the recent merger with SBC Warburg, Bonsall was the global head of securitisation at UBS, in terms of volume and diversity of transactions a market leader in international asset securitisation. The 20 strong team are all former members of that team, and some key staffers will replay their UBS roles at CIBC Wood Gundy. Mark Lewis will lead the marketing and deal execution effort in Europe, while Fazel Ahmed fills that role in Asia.

THREE collateralised loan obligations, worth a total of $2.8bn, have been launched since last Friday. All came in floating rate dollars, but the similarities ended there. The largest, at $1.3bn, was Indosuez Capital Funding IV. CIBC Oppenheimer lead managed the deal for Indosuez Capital, a US subsidiary of Crédit Agricole Indosuez.

AT LEAST eight London-based securitisation officials have resigned from Deutsche Bank, most of them dissatisfied with new roles they were assigned after a reorganisation. Among the departing staff is Robin Saunders, who had headed the London asset backed group.

GREENWICH NatWest is to securitise a completely new asset class -- VAT receivables. A $100m CP facility has been arranged for Meridian VAT Reclaim, a Dublin based company which reclaims VAT from EU tax authorities for clients around the world. "Meridian is by far the largest VAT recovery organisation in the world," said Stuart Lammin, associate director in NatWest's London asset securitisation group. "Most of the claims arise from business travel. The amounts are very small, so there is a huge quantity of data to process -- Meridian's systems are extremely impressive."

* Merrill Lynch will next week launch Contimortgage Home Equity Loan Trust 1998-2, a $1.75bn deal with fixed and floating rate tranches. * Deutsche Bank is believed to be preparing a £115m residential mortgage securitisation for Kensington Mortgage Co -- the deal may launch as early as next week.

Securitisation practitioners in Europe have high hopes for the coming of the euro. More investors will turn to asset backed securities in a search for yield, bankers believe, and governments, banks and corporates will have stronger incentives to securitise their assets.