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Fitch IBCA offered a new methodology for comparing the strengths of multilateral development banks this week when it published a report looking at the credit strength of borrowers such as the Asian Development Bank and the World Bank from a quantitative perspective. During last year's global financial turmoil the spread differential between triple-A rated supranationals widened to levels seemingly incompatible with their identical ratings. And while considerations such as liquidity played their part in the realignment of credits, several supranationals complained that the market was not correctly pricing risk.

Irish bank First Active felt the benefit of Emu last week when it launched its third public securitisation to an enthusiastic reception from continental European investors. Paribas lead managed the Eu250m mortgage backed deal through Celtic Residential Irish Mortgage Securitisation No 3 Plc.

Deutsche Bank this week launched its first synthetic collateralised loan obligation reducing regulatory capital held against $5bn of loans to high quality corporates in the US, UK and Canada, originated by Deutsche's global banking services division. The deal will be closely studied for a number of reasons. Deutsche Bank's programme of conventional, true sale securitisations has been one of the biggest and certainly the most high profile in the last year.

MOODY'S Asian structured finance analysts have assigned an A2 rating to a $100m collateralised bond obligation devised by Morgan Stanley Dean Witter. Cheyne CBO I Ltd was structured by Morgan Stanley's London office, but some 57% of the credit exposure is to Asian obligors.

n Morgan Stanley Dean Witter is believed to have sold a large proportion of the Formula 1 Finance bonds it holds. Bankers said this week that the bookrunner had kept in touch with investors throughout the restructuring of the now $1.4bn securitisation of broadcasting and promotional rights from international motor sport for UK firm Formula One.

UK based passenger transport group Stagecoach may use securitisation to refinance part of the $1.237bn cost of its acquisition of US bus company Coach USA. The two companies announced this week that a new Stagecoach subsidiary in the US will make a tender offer of $42 per share in cash for the common stock of Coach USA, and that Stagecoach will assume the US company's $571m of net debt.

Everyone knew that the introduction of the euro would kickstart the development of a credit market in Europe. But few could have predicted the speed at which it would take off.

Last week's Learning Curve proposed a very general model for the evolution of energy prices that has been found to provide a good representation of reality.

The new European corporate market has got off to a flying start, with record breaking deals and volumes ensuring the sector has grabbed the headlines this year.

Pfandbrief issuers have ridden a wave of demand this year as portfolio reallocation in the euro zone has led to strong demand for almost all types of spread product.

The development of a credit culture among European fund managers took a long time to get underway. The advent of the euro has made its momentum unstoppable.

Devolution and the need to diversify their sources of funding are prompting Europe's regional and municipal credits to consider the new euro bond market.