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THE Asian financial crisis has accelerated Korea's decision to open its bond market in an attempt to boost capital inflows and stabilise local markets. The announcement came after the Korean currency slid to a record low of W964/$ against the dollar on Thursday. The plan, originally scheduled for the end of 1999, will allow foreign investors to hold a maximum of 30% of each unsecured long term corporate bond offering, and individual foreign investors up to 6% of corporate bonds. Fifty percent of non-guaranteed convertible bonds issued by conglomerates from 1998 can be held by foreigners, an increase from the current 30% limit.

AMID ASIA'S greatest market chaos in recent history, president Suharto's politicking with the IMF and plummeting select metal prices, PT Aneka Tambang (Antam), the Indonesian state nickel and gold mining outfit, could not have picked a worse week to price its initial public offering. One banker in the syndicate said the deal, which ended up being 1.5 times subscribed, should have been pulled during the Taiwan and Hong Kong market plunge. Had the deal been put off until the region showed more signs of economic stability, he added, Antam could have enjoyed a much more successful sale.

FIRST CAME Asia's financial difficulties, then the currency devaluations and last week the beginning of the stockmarket slide. It could not be long before region's debt markets were hit as well, and Asian bonds this week suffered a bout of unprecedented volatility as spreads soared, then recovered some ground but remained at levels unimaginable only weeks ago. Debt traders, salesmen and syndicate managers joined their equity counterparts with their eyes glued to the screens as Asian Euro and global bonds see-sawed in line with the region's stockmarkets.

ASIA'S EQUITY markets suffered a week of unprecedented volatility this week as stockmarkets saw both record daily losses and daily rises. It left the pipeline of deals expected to come to the market in the next two months looking decidedly threadbare. On Tuesday, Hong Kong's Hang Seng index fell by more than 14%. The next day it bounced back 17% as Wall Street rallied. On Thursday it fell again, prompted by a decision by Moody's to place the outlook for Hong Kong banks on negative and, in particular, to review the financial strength of Hang Seng Bank and HSBC.

* Schieneninfrastukturfinanzierungs-Gesellschaft mbh (Schig) Guarantor: Republic of Austria

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Asset backed securities: * Securitised Australian Mortgage Trust 1997-2

THE volatility in emerging equity markets this week claimed one new issue victim when Bonton, the Czech media company, decided to delay its initial public offering at the last minute. The offering of shares in the company, which was set up seven years by two local jazz musicians, is the first international IPO from the Czech Republic.

Asset backed securities: * HYPO-G

FRENCH insurance company AXA-UAP has mandated Merrill Lynch as global co-ordinator to lead a multi-currency subordinated step-up perpetual bond -- a debut in the international bond markets by the French insurance group. The bond will be non-callable for 10 years. If the call option is not exercised then the coupon will step up by 150bp. Standard & Poor's has provisionally awarded the deal an A- rating.

THE Kingdom of Belgium this week completed roadshows for its planned issuance of linear bonds (OLOs) denominated in Deutschmarks and French francs. The bonds, for which JP Morgan is global coordinator, will become fungible with a line of Belgian franc-denominated OLOs which were auctioned this week as soon as all three currencies convert to the euro.

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