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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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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.