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THE IRISH government has reached an agreement with the EU Commission on the future of Dublin's low tax International Financial Services Centre. Under the new agreement, the IFSC's tax rate will change to 12.5% on January 1, 2003. Previously, certified corporates operating from the IFSC paid corporate tax at a rate of 10%.

* Pamuk Bank of Turkey this week issued a $70m securitisation of remittances from Turkish workers in Germany, lead managed by Credit Suisse First Boston. Pamuk 1998-A Remittances Trust issued a single tranche of bonds with an average life of 1.6 years and three year final maturity. Rated BBB- by Duff & Phelps, the deal priced at 350bp over one month Libor. The transaction was structured by CSFB's London based securitisation team, but was sold from New York in the 144A market. The remittances will be collected at Pamuk Bank's branches in Germany.

This article will provide an introduction to target-oriented risk measures in portfolio construction and optimization.

TWO OF THE Phillipines' leading corporate borrowers firmed up their capital raising plans this week, with the official confirmation of a mandate from Philippines Long Distance Telephone Company (PLDT) and invitations for a new bond offering by PNOC Energy Development Corporation (PEDC). As expected, Merrill Lynch emerged as the winner to lead a new bond issue for PLDT, which is hoping to become the first Asian borrower to raise funds in euros. As the republic put back its plans to tap the sector, PLDT has moved forward in its place with plans to raise up to Eu250m via either a seven or a 10 year offering.

THE REPUBLIC of the Philippines has decided to meet increasingly volatile conditions in the emerging markets sector head on, opting this week to split its forthcoming funding requirement into separate market driven, strategic transactions. Finance secretary Edgardu Espiritu announced on Wednesday that Goldman Sachs has won the mandate for a $500m FRN that is likely to be launched in September. This will be followed by a $500m equivalent euro denominated issue via JP Morgan and Warburg Dillon Read later in the autumn, market conditions permitting.

* A ¥39.9bn dual-currency issue has been launched by New South Wales Treasury Corp. Led by Nikko Europe, the one year deal for the Aa2/AA-rated credit has an issue price of par and a semi-annual coupon of 4% payable in yen. Redemption is in US dollars at $3,477.78 per ¥500,000 face value bond at maturity in either yen or US dollars. Fees total 125bp.

Australia Warburg Dillon Read has underwritten a A$60m placement for Advance Property Trust as part funding in the acquisition of the Riverside Centre in Melbourne. Units in the placement were priced at A$1.49.

THE STATE Development Bank of China is finalising internal procedures for the launch of a new benchmark bond which officials said could be launched towards the beginning of the autumn, should spreads stabilise. The BBB+/A3 rated bank has a funding requirement of between $500m and $750m.

BANKERS fear that financial reforms to be announced today (Friday) in Thailand may not be enough to rescue the country's battered financial sector. Although the measures have not been revealed, a number of senior equity capital markets figures expressed doubt that they would rectify the current situation as the government hopes. The news follows a week of confusion after Bank of Thailand deputy governor Kitti Patpongpibul announced a plan offering a five year money-back guarantee to investors in Thai banks.

THE HONG KONG dollar market had one of its busiest weeks of the year, as supranational issuers took full advantage of an upward spike in short term rates on the back of renewed currency concerns about potential devaluations in China and Hong Kong. A dozen fixed rate deals have been launched since last Friday, of which one third were from the European Bank for Reconstruction & Development (EBRD), while Swedish mortgage lender AB Spintab also increased its HK$50m deal to HK$150m. Last Friday saw a debut HK$250m from Cades led by BNP Oakreed, and a HK$1bn deal from the World Bank led by HSBC Markets with Dao Heng Bank as senior co-lead.

THE JAPANESE parliament has approved a new set of rules, to come into effect on September 1, detailing the assets eligible as collateral for asset-backed securities. The only real estate eligible will be property owned by financial institutions; other valid assets will be loans, sales credit and other money credit. The Japanese parliament lifted a ban on the sale of ABS over bank counters. The law also confirmed that special purpose companies will be able to buy the assets of financial institutions to use as collateral for their own ABS, relieving the banks of their bad assets.

THE LATIN new issue market ground to a complete halt this week as spreads across the emerging markets moved out to levels not seen since the Mexican peso crisis in December 1994. Many investors and trading desks have pulled out of the market altogether. With the fears about Russia's financial predicament pulling the rest of the market down, the closely followed JP Morgan Emerging Market Bond Index Plus (EMBI+) hit a highest yield of 911bp on Wednesday from 575bp in mid-July -- the worst level since the 1994/95 Mexican crisis peak of 1924bp.