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INVESTMENT bankers remain optimistic, if cautious, about the prospects for new equity issues for the rest of this year -- despite the slump in world stockmarkets this week.

THE INTERNATIONAL primary bond market shuddered to a halt this week as volatility swept across the globe, sending secondary market spreads rocketing. Many investors have closed their books early for the year and bankers predict little recovery in new issue volumes before the start of 1998.

INVESTMENT bankers remain optimistic, if cautious, about the prospects for new equity issues for the rest of this year -- despite the slump in world stockmarkets this week. With the primary market pipeline bulging -- with an array of transactions ranging from large privatisations and corporate IPOs to specialist stock and emerging market offerings -- investors are becoming more selective in their approach to new issues.

Market commentary Compiled by Brendan Goffinet, Hambros Bank Ltd, London. Tel: +44 171-865 1087

* Republic of Portugal Rating: Aa3/AA-

STANDARD Bank London Ltd has quietly arranged an innovative $75m foray into the syndicated loan market for Liverpool-based Meredith Jones funding the purchase of cotton from Uzbekistan. The facility, which is structured with 90% Uzbekistan risk, has been an outstanding syndication success with $133m raised so far and more to come.

Asset backed securities: * Haven Funding plc

Domestic issuance: * Emissionszentrale der Schweizer Gemeinden

CITISECURITIES launched an A$168.2m securitisation of Citibank mortgages in the Australian domestic market this week. The deal has a nine year expected maturity, and offers A$163m of class 'A' notes with an average life of 3.1 years, rated triple-A by Moody's and Standard & Poor's. The bonds will be priced between 24bp and 26bp over the one month bank bills swap rate on Thursday November 6. The senior notes are supported by A$5.2m of 'B' paper rated AA- by Standard & Poor's, with a 7.8 year average life. The indicative price range for the subordinated tranche is 39bp to 43bp over the BBSW.

TWO internationally targeted US credit card securitisations blew out this week as investors rushed for safe floating rate investments. Discover Credit Card Master Trust 1 Series 1997-4 came last Friday with a $500m senior class which was increased to $700m and then $750m, and was still oversubscribed.

DAIWA Europe launched Hokkaido Takushoku Bank's long awaited ¥32bn securitisation of apartment loan receivables this week, rated triple-A by NIS and Standard & Poor's. Launched through Cayman Islands special purpose vehicle Auroral Genesis Ltd, the floaters have a legal maturity in November 2015, an expected maturity in November 2004, and an average life of 3.2 years.