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BRAZIL BECAME the focus of world market attention yesterday (Thursday) as its central bank rushed to defend its currency from speculators and to allay investor fears that the country would be the latest emerging market economy to suffer an exchange rate crisis. The central bank was forced to spend as much as $4.77bn on Tuesday, in net terms, to defend its currency, about $200m on Wednesday and it intervened in the market four times to spend about $1bn on Thursday. This makes a sharp dent in its previous level of $61bn of foreign exchange reserves.

THE EQUITY operations of BZW and NatWest Markets could be under new ownership within the next few days, amid signs that their clearing bank parents are nearing agreement on selling the respective units. Despite the volatility in world equity markets over the last few days, executives at both firms are expecting announcements on their future imminently.

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THE CAPITAL increases for Bayerische Vereinsbank and Volkswagen suffered sharply contrasting fortunes this week as investors started to become increasingly selective in their approach to new issues. While Vereinsbank's DM3bn rights issue has attracted strong demand from investors during its bookbuilding, Volkswagen announced it was postponing its DM6bn-D8bn capital increase indefinitely.

Argentina Chase Securities Inc, CSFB and JP Morgan Securities Inc are braving turbulent market conditions with the formal launch this week of their $600m two-tranche loan refinancing the outstanding bonds of YPF's Maxxus subsidiary.

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* Russia's National Reserve Bank (NRB) which is planning to tap the Euromarket with a debut issue in 1998, this week received its first international credit rating. IBCA awarded the bank a BB long term rating -- one notch below the agency's BB+ sovereign ceiling for the Russian Federation. Formed in 1993, NRB is 65% owned by Russian gas giant Gazprom, for which the bank acts as a de facto investment banking arm.

Pfandbriefe/domestic issuance: * Dexia Hypothekenbank Berlin

* Nederlandse Waterschapsbank NV Rating: Aaa/AAA

DEUTSCHE Morgan Grenfell this week offered international bond investors the first opportunity to gain exposure to Russia's Republic of Sakha, launching a $50.5m one year issue via Cayman Islands-registered debt repackaging vehicle Earls Three. The novel transaction represented a repackaging of a $50m participation in a $75m equivalent rouble denominated term loan extended to Sakha's finance ministry earlier this month by Credit Suisse First Boston's Cypriot banking unit.

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