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NHP, the UK company that finances operators of homes for the elderly, will today (Friday) launch a £265m securitisation of its rental incomes, lead managed by Merrill Lynch and JP Morgan. The UK government is increasingly using private sector nursing homes to provide care for old people who can no longer look after themselves. Several companies have begun to offer finance for the operators of such homes through sale and leaseback agreements, financed by securitisation.

HYPOVEREINSBANK's Eu2.22bn collateralised loan obligation Geldilux 99-1 marked a new departure for the asset class this week, combining structural advances made by a number of previous issuers with some novel features. Geldilux is most closely comparable to Credit Suisse First Boston's $2.5bn Triangle 2 transaction, launched last September. Triangle 2 is delinked from CSFB's rating, since bond proceeds never reach the bank's balance sheet, but are held in the issuing vehicle and invested in US Treasuries.

A fundamental intuition provided by the Black-Scholes model is the principal of no arbitrage and the use of risk-neutral valuation for pricing derivative instruments.

THE SPATE of first quarter securitisations from Japanese equipment leasing and consumer finance companies began in earnest last Friday, and continued this week. Squeezed by Japanese banks' unwillingness to lend, non-bank finance companies with healthy assets are eager to raise capital from new investors before the fiscal year end on March 31.

THE MASS Transit Railway Corporation (MTRC) reopened the international debt markets for Hong Kong credits yesterday (Thursday) with the company's first ever global bond. Led by Goldman Sachs and Merrill Lynch, the increased $750m 10 year transaction was priced at 99.584 to yield 287.5bp over Treasuries, the tight end of its indicative range, but at the wide end of market expectations.

THE REPUBLIC of Korea's upgrade back to investment grade status by Standard & Poor's this week is unlikely to open the floodgates to sizeable vanilla funding by domestic entities in the international debt markets. With the Ministry of Finance & the Economy (Mofe) making plain its intention to promote debt reduction and a greater use of the Korea's domestic debt markets, both the Korea Development Bank (KDB) and Export-Import Bank of Korea (Kexim) are likely to remain on the sidelines until later in the year.

GENERAL Electric Capital Corporation became the first foreign corporate to issue in the Singapore dollar bond market this week with a S$300m ($177m) Deutsche Bank led deal. Priced at par with a semi-annual coupon of 3.75%, the triple-A credit achieved a 75bp spread over government bonds, compared to the 50bp-55bp level paid by the International Finance Corp (IFC) when it launched a similarly sized three year deal last October via Citicorp. Fees totalled 30bp.

THE ASIAN Development Bank kicked off its 1999 funding programme in style this week with the launch of an NT$10bn ($310m) three tranche bond deal, the largest ever issue by a non-Taiwanese entity in the domestic bond market. The issue is first time that the ADB has returned to Taiwan since December 1996, and also marked the first from the island republic since the government suspended supranational issuance early last July for fear of speculative pressure against the currency through the swap market.

China The China Securities Regulatory Commission is set to change IPO rules to give issuers and underwriters greater freedom in making decisions in the domestic market. Analysts said the move was intended to allow companies to price at levels that were more appropriate to their business, rather than forcing a norm across a variety of industries.

BANGKOK Bank completed the largest ever exchange offering from Asia yesterday (Thursday), raising $259m of much needed Tier 1 capital. Led by Morgan Stanley Dean Witter, the $716.7m exchange by Thailand's largest commercial bank effected a clever means of bolstering the bank's capital ratios at a time when more conventional means of re-capitalisation have been all but closed.

GOLDMAN Sachs this week launched the $220m 'H' share IPO for Shandong International Power Development (SIPD), aiming to defy gloomy market predictions, the demise of Heilongjiang Agriculture's IPO and investors' concerns over China's economy and currency. The US bank had already bolstered its credentials during the week with a $60m placement for leading Hong Kong trading company Li & Fung.

THE REPUBLIC of the Philippines has finally ended speculation about the composition of syndicate places for its forthcoming euro-denominated bond, when it issued an official announcement yesterday (Thursday). Officials confirmed that, while the original joint lead managers JP Morgan and Warburg Dillon Read will retain their status, they will also now be joined by Deutsche Bank and Goldman Sachs -- which have been assigned joint lead roles.