GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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  • THE TWO pre-eminent US asset backed issuers, Citibank and MBNA America Bank, both launched deals in European currencies this week, breaking a nine month drought of US product outside dollars. Credit Suisse First Boston lead managed both issues. MBNA brought the first ever securitisation of US assets in euros, with a Eu750m five year floating rate note priced at 14bp over three month Euribor.
  • MORGAN Stanley Dean Witter aims to launch its £1.54bn securitisation of the prestigious Broadgate office development in the City of London for property company British Land next week. The transaction asks a lot of investors -- they will be taking a very long bet on the continuity of the City of London as a thriving business centre -- but most observers said the glamour of the deal and the quality of the underlying real estate and current tenants would likely ensure success.
  • * K2 Corporation, the triple-A rated bond arbitrage vehicle set up by Dresdner Bank, this week launched the first deal from its Euro-MTN programme. JP Morgan lead managed the $100m one year deal, which priced at 99.98 to give a discount margin of 3bp through three month Libor on a coupon of Libor minus 5bp. An MTN sales official at JP Morgan said the deal was essentially preplaced privately, and declined to comment further.
  • Last week's Learning Curve discussed several alternative volatility smile models, all with the common feature that the volatility was a known deterministic function.
  • INITIAL interest in the syndication of the $80m 364 day term loan for Absa Bank has been strong, with about five commitments already logged in with the seven arrangers. The arrangers are American Express, Bank of Tokyo-Mitsubishi (bookrunner), Crédit Lyonnais (documentation agent), Dai-Ichi Kangyo Bank, First Union, Greenwich NatWest (facility agent) and Standard Chartered (bookrunner). In retail, lead managers are offered 15bp for $5m commitments and managers 10bp for $2.5m.
  • THE REVIVAL of the Korean primary equity market progressed this week with Warburg Dillon Read set to launch a $200m GDR sale for Samsung Display Devices (SDD) during the week of May 3. Morgan Stanley Dean Witter's landmark $1.6bn Korea Telecom IPO will be launched during the same week. Bankers said it would be the first time in recent memory that two large deals would be in the market at the same time -- a testament to the change in sentiment among investors.
  • JAPANESE finance company Orient Corporation reaffirmed its ambition to be the benchmark issuer of Japanese auto loan backed bonds this week, as DKB International launched the fourth issue from the company's Oscar programme. Orico issued bonds in euros for the first time -- DKBI cut the ¥46bn senior interest in the deal into Eu145m and $150m of senior bonds rated triple-A by Moody's and Standard & Poor's.
  • THE AUSTRALIAN domestic corporate bond market finally came of age this week with the launch of the first true public issue from an industrial triple-B credit. The A$150m transaction from local media group John Fairfax Holdings -- which was overwhelmingly successful and increased -- was hailed by market participants as a watershed in the market's development as it moves beyond the bank and high grade market towards a full credit spectrum of issuers.
  • KOREA's Ministry of Finance and the Economy told domestic borrowers in a meeting this week that it will grant no further approvals for international bond issues over the near term. Underlining its determination to enforce a debt reduction programme on the republic, the move is also being viewed as a prop for the won which has risen steadily against the dollar over the past month as foreign institutional investment returns to the domestic stock market in force.
  • DESPITE a worsening political situation in Indonesia, investors flocked to both Asia Pulp and Paper's $351m ADR sale and a $60m sale of the government's stake in Indofood Sukses Makmur this week. Bankers cited the deals as proof that good companies can do deals even in the most difficult circumstances.
  • OPINION remains divided over whether the Hong Kong equity market is enjoying a fresh bout of opportunism, or a sustainable rally which will encourage new deals to the market. This is despite a series of successful placements in the Hong Kong market that raised around $330m this week.
  • SINGAPORE's Housing & Development Board (HDB) is planning to launch its second public bond issue in the domestic capital markets over the next two weeks. The domestic statutory board had originally hoped to issue a follow-up transaction to its early February debut last month, but pushed its plans back because of competing transactions from Ford, the Nordic Investment Bank and the EBRD.