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FOLLOWING last week's successful reopening of the yen Euro-convertible market by Nedec Corporation, Nichiei and Sega Enterprises this week vied for the mantle of the largest issuer from the sector as activity increased against a background of a solid performance by the Nikkei in recent weeks as well as continuing demand for yen exposure. Bankers said an upswing in sentiment on Japan, the general willingness of investors to look at new opportunities at the beginning of the year and low premiums had buoyed the market. In addition, a number of companies had been seeking to access capital for some time and would likely jump at the window of opportunity now offered.

JAPAN'S fourth largest leasing company, Showa Leasing, launched a $255m securitisation in the Euromarkets this week, lead managed by IBJ International. The deal is the first asset backed issue from the Japanese leasing sector since Japan Leasing Corp filed for protection from its creditors in September. JLC is by far the dominant equipment lease securitiser in Japan, and its reorganisation under court protection threatened to shatter confidence in the product as a whole.

Australia The Australian government has appointed ABN Amro, Credit Suisse First Boston and JB Were as co-ordinators for the sale of a further 16% stake in telecom company Telstra. The line-up is identical to that for the successful first tranche sale in November 1997.

ING BARINGS is on the verge of admitting defeat by pulling Heilongjiang Agriculture's $200m IPO this weekend. But while the move deepens the gloom settling over China's H-share sector, Goldman Sachs will launch Shandong International Power next week, apparently safe in the knowledge that 40% of the sale is covered by a strategic investor. The conflicting news crowns a week of worry for Hong Kong's equity capital market bankers. Amid a steadily worsening stream of results from once star performers, such as China Southern in the red chip and H-share sector, the withdrawal of the -- albeit small -- Zhujiang Steel Pipe Holdings IPO further demonstrated the instability of the market.

HONG KONG corporates displayed a rare burst of activity in the domestic and international debt markets this week with issues from three of the territory's leading names: Mass Transit Railway Corporation (MTRC), Hutchison Whampoa and Sun Hung Kai Properties. After years of heavy reliance on the extremely cost efficient Hong Kong dollar denominated syndicated loan market, the emergence of all three borrowers in the domestic fixed rate bond sector proved a surprising and welcome development for the local market.

AMP BANK Ltd this week became the first major issuer of 1999 in the domestic Australian dollar debt market, launching a debut A$200m three year fixed rate deal. Led by Westpac, with ABN Amro and Warburg Dillon Read as dealers, the issue was priced at 99.63 with an annual coupon of 5% to yield 59bp over government bonds. Launched off an A$1bn domestic TCD/MTN programme, the issue was swapped into floating rate obligations, locking in a spread of 15bp over bank bills.

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* Morgan Stanley Dean Witter has appointed Stefano Corsi and Jonathan Chenevix-Trench as co-heads of fixed income in Europe. They succeed Paul Daniel, who has decided to retire from the company to pursue other interests. Previously a manager in the fixed income sales department, Corsi will also become head of European fixed income sales following the retirement of Robert Whitehand.

SPECULATION was rife this week that the Republic of Turkey is to opt for a legacy currency issue for its first Euromarket transaction in 1999. Market participants say that the B1/B rated sovereign is poised to launch an expected DM200m three to five year offering, possibly as early as next week. Commerzbank has been widely touted as the bookrunner of the proposed issue, but officials at the bank denied that it had been mandated to lead such a bond.

The Euroloan market is set once again to provide the world's M&A boom with a boost with news that it will help finance the British Aerospace (BAe) purchase of Marconi Electronics from GEC. GEC has agreed to sell Marconi for £7.8bn in a deal that is initially a demerger and then a purchase.

* Cregem Finance NV Guarantor: Crédit Communal de Belgique SA

* Australia & New Zealand Banking Group Ltd Rating: Aa3/AA-