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* US monoline insurer Financial Security Assurance has launched an innovative vehicle which will buy portions of deals it has wrapped. FSA Global Funding Ltd, which is itself guaranteed by FSA, will finance itself through a $4bn Euro-MTN programme arranged by Merrill Lynch. The vehicle's purpose is to provide an extra source of demand for FSA wrapped deals in the primary and secondary markets.

US ASSET backed issuers jostled each other to bring deals this week, as the market reached its traditional late quarter crescendo. One syndicate manager in London forecast $10bn of issuance by the end of the week, and a similar number next week. "The volume is heavy, but spreads are holding in very well, especially when you consider how tight they are in the floating rate sector," the banker said. The biggest guns were fired by Sallie Mae, with a $3.021bn global student loan deal, led by Morgan Stanley Dean Witter.

KENSINGTON Mortgage Company, the UK non-conforming lender, broke new ground this week by creating separate, tradable securities from every scrap of cashflow on a mortgage portfolio. The company launched a £111.4m bond through Deutsche Bank, which was also the first UK non-conforming mortgage deal to be 144A eligible.

Paragon, the UK sub-prime mortgage lender, launched its first securitisation of consumer loans this week in a £300m deal led by JP Morgan. Paragon began originating unsecured loans in 1996, and has since begun to write auto hire purchase contracts, but it acquired the bulk of its portfolio when it bought all the assets of Universal Credit, a Lloyds TSB subsidiary, in March this year.

In allocating and managing risk across global markets, it is crucial to take account of the interrelationships between different markets.

THE MALAYSIAN government revealed the shape of the country's Asset Management Corporation (AMC) yesterday (Thursday) as it continues to forge ahead in a pre-emptive strike against mounting non-performing loans (NPLs) in the banking sector. JP Morgan has been awarded the role of financial adviser, while Arthur Andersen has been appointed to provide operational and accountancy advice.

THE KOREA Development Bank (KDB) raised $150m this week in a private placement transaction that succeeded in achieving a cost of funding on a par with the Republic of Korea. Reflecting the Korean government's unwillingness to allow borrowers to engage in high profile transactions while spreads remain volatile, bankers have reported increasing use of demand generated by reverse enquiry.

* HSBC Investment Bank this week completed an IPO for Hong Kong's Sinolink Worldwide Holdings. The deal had a subscription rate of 1.18 times and shares will begin trading on June 8. * Gemzboh Holdings Ltd said it will raise net proceeds of HK$31.5m through an initial public offering of 40m new shares and 20m shares held by chairman Tsoi Kwing-ming.

JAPAN'S Nippon Telegraph & Telephone Corporation (NTT) this week launched its second domestic jumbo offering of the year with a ¥100bn issue via Goldman Sachs and Nomura. As with NTT's Goldman/DKB led issue of late January, the par-priced deal had a 10 year maturity, but a wider spread over JGBs. Having achieved a 28bp spread for its first issue, the latest deal came at 34bp over.

ORIENT Corporation, one of Japan's leading independent finance companies, launched its fifth domestic securitisation of auto loans last Friday. DKB Securities brought a ¥30bn deal in seven tranches for special purpose vehicle Orico Asset Funding Japan. All the bonds were rated AAA by Standard & Poor's and R&I, on the strength of a ¥5bn subordinated tranche, retained by the issuer.

* ABN AMRO Bank has appointed Sergio A Lires Rial as its new chief executive officer for the Asia Pacific region, following the departure of Ton J de Boer. Having worked for the bank since 1986, Rial was most recently its country manager for Hong Kong and China.

* Moody's has placed the Aaa insurance financial strength ratings of four Japanese property and casualty insurance companies under review for possible downgrade. The agency said that its review of the four -- Tokio Marine & Fire Insurance Co, Yasuda Fire & Marine, Mitsui Marine & Fire, and Sumitomo Marine & Fire -- was prompted by anticipated reductions of insurance premium rates following the end of the government's restricted pricing system on July 1.