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What information about a counterparty's default probability is determined by their stock price?

HONG KONG's surrogate sovereign borrower, the Mass Transit Railway Corporation (MTRC) is likely to appoint bookrunners for its first Yankee offering in nearly three years by the middle of next week. Despite an unstable spread environment for borrowers across the region, the wholly government owned A+/A3 rated company is considered one of the few credits from the region capable of attracting enthusiastic investor demand.

Here are the details of the new Moody's rating of Korean banks. * Shinhan Bank -- long term senior debt rating of Ba1 reaffirmed, but subordinated debt rating also cut two notches from Ba1 to Ba3. Bfi rating dropped one notch from D+ to D.

PROSPECTIVE bond issues by Pakistan and Sri Lanka have been thrown into doubt by the reverberations of India's decision to test-detonate five nuclear devices. International sanctions announced against India may also put on hold transactions from the country. The primary casualty looks set to be a new benchmark offering by the Islamic Republic of Pakistan, to led by ANZ. Due diligence had already begun on the $300m five year fixed rate offering which was scheduled to be launched next month.

SOME OF Asia's leading investment bankers were left stranded in Jakarta yesterday as social and political turmoil in Indonesia intensified with mass rioting throughout the central business district. Having been invited to Jakarta by the government to compete for a financial advisory role overseeing its wide-ranging privatisation programme, talks were abandoned after it became obvious that the country was closer to anarchy than it was to being ready to promote itself to global investors.

POHANG Iron and Steel (Posco) defied desperate market conditions and the expectations of many bankers this week when it sold 7.69m ADRs at $13 each. The deal won plaudits for joint lead managers and bookrunners ING Barings and Salomon Smith Barney. The issue emerged shortly before an expected change in foreign ownership limits for Korean companies which may depress values as the stock becomes less scarce. The pricing represents a 23.1% premium to Wednesday's closing price in Seoul and an 8% discount to the ADR price on the same day. The GDRs are fully fungible.

* As part of plans to develop a fixed income presence in Asia, Bank Boston has appointed Jie Hu as a vice president to its research team based in Singapore. Formerly covering securitised bonds at Bankers Trust in Hong Kong, Hu will report to head of research William Overholt who previously headed Bankers Trust's fixed income research team. Having built up a team of four analysts, Bank Boston is said likely to increase the number to up to a dozen by the end of the year.

THE HONG Kong markets were abuzz with speculation about a number of possible convertible bond mandates this week, including deals for China Resources Enterprise, an exchangeable bond for Guangzhou Investment Company and a jumbo offering from China Telecom. Goldman Sachs is believed to have secured a $1bn convertible mandate for China Telecom, while Salomon Smith Barney was linked to a $300m convertible mandate for China Resources Enterprise.

Asset backed securities: * MBS-3

China The unpredictable state of the B share market in Shenzhen was evident again this week as two companies cancelled planned offerings because of poor market sentiment. However, a new candidate lined up to take their place.

THE KINGDOM of Thailand is set to award the mandate for a return to the international capital markets next week. But its plans have been left hanging in the balance after the country failed to win an investment grade rating from Fitch IBCA and outstanding spreads widened as a result of renewed volatility across Asia. Bankers said that although the ministry of finance is poised to award mandates for its prospective $1bn to $2bn deal by the beginning of next week, it remains far from certain that the issue will go ahead as scheduled, should spreads come under greater pressure.

SUNCORP-METWAY, the Queensland based banking and insurance company, broke new ground this week with the launch of an inaugural Deutschmark FRN. The DM250m two year deal ranks as only the fifth issue in the sector from an Australian financial institution since the 1980s, following previous deals by Bank of Melbourne, BankWest, St George Bank and Westpac. Jointly led by Nomura and SBC Warburg Dillon Read, the issue marked a new stage in the allfinanz group's strategy of diversifying its funding sources in the offshore markets.