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SBC WARBURG Dillon Read has launched a £250.33m securitisation of shared appreciation mortgages, its second packaging of the asset class, but the first to attempt to tap into US demand. Unlike the first deal, launched in July 1997, this transaction contains a 144A provision under which, according to SBC Warburg analyst Pratik Shah, some 30% of the deal is likely to be sold. That extra pool of demand may be needed: the Bank of Scotland has already announced that it will issue up to a total of £1bn of similar bonds this year, with the underlying product accounting for around a third of the bank's new mortgage product this year.

The consistent pricing of derivative products involving the joint realizations of a collection of forward rates requires the specification of the covariance matrix between the various underlying rates.

Australia's domestic bond market is enjoying rapid growth. The build-up of investible funds at a time of a declining government borrowing requirement is creating a need for new forms of fixed income assets.

It is not just European borrowers which have accessed the euro market. Latin American sovereigns, which in recent years have come to rely on European investors - in particular retail - in currencies such as the Deutschmark and lire, are trying to ensure that these crucial investors are familiar with their product in euro at the earliest possible stage.

From the outset, L-Bank has been at the forefront of euro-related issuance. Two years ago, it began issuing benchmarks in the currencies which will make up the future euro.

Can supply generate demand? The leading issuers and investment banks in the debt capital markets certainly hope so, as they seek to establish a foothold in Europe's future single currency market.

MOODY'S REVISED the outlook on its ratings for six of China's major international trust and investment corporations (ITICs) from stable to negative at the beginning of the week. The agency said: "Daunting difficulties in restructuring the country's loss-making state owned enterprises and the increasingly severe unemployment are straining the financial resources of China's central and local governments and this weakens their ability to support the ITICs that they control."

* The Council of Europe has launched two Hong Kong dollar deals via HSBC Markets. The first, a HK$1bn two year straight, was launched last Friday. The deal pays a quarterly coupon of 11.6% and offered a 12.115% annualised yield at its par issue price. Co-leads to the LAF eligible deal were BNP and China Development Finance Hong Kong (CDFC). Fees totalled 20bp.

DEPFA KICKED off its global Pfandbrief programme on Tuesday with a blow-out DM4bn transaction -- the largest single Pfandbrief issue to date. The German mortgage bank already has the only outstanding Pfandbrief deal totalling more than DM3.5bn -- a DM5bn jumbo that was initially launched for DM1bn and increased four times. Only Italy, the UK and the German Länder have issued larger Deutschmark straights. High liquidity was guaranteed through a 10 strong committed market making group and a repo facility, which attracted strong international interest, backed up by a supportive bid from Germany.

JB WERE and Macquarie Bank are poised to kick off the public offering period for Network Holdings, the parent company of Channel 10, Australia's third largest free-to-air TV station. The secondary offering should start in about two weeks for listing in early April, with likely proceeds of around A$300m ($200m). According to syndicate officials one share in the holding company will represent one share in Channel 10.

FORMAL ROADSHOWS for the $130m privatisation of India's Container Corporation (Concor) have been scheduled for launch next Wednesday pending final regulatory approval. Following the completion of premarketing, a proposal for pricing has been put forward to the syndicate and approval is expected to be granted over the weekend. JP Morgan is lead managing the transaction with co-leads DSP Merrill Lynch, HSBC and SBC Warburg Dillon Read.

EAST JAPAN Railroad (JR East) is to price a ¥70bn ($550m) two tranche bond issue next week, exploiting the favourable sentiment in the Japanese bond market since NTT last week launched its ¥100bn bond using Euromarket pricing techniques. JR East plans to sell ¥40bn in 12 year bonds via Nomura Securities along with a ¥30bn 20 year tranche to be led by IBJ Securities.