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ABN AMRO and Deutsche brought this week the third securitisation of Volkswagen auto leases, after a gap of almost three years since the first two deals. Volkswagen Car Leases No 3, a Eu500m, two tranche issue follows Ford's Globaldrive securitisation last month of European auto leases. The first two Volkswagen deals were launched in 1996. "VW had no funding need for ABS deals in 1997 and 1998," said Hans-Jürgen Fritz, director and head of German securitisation at ABN Amro.

GREENWICH NatWest has introduced a new funding vehicle for UK housing associations with a £94.25m deal for RSL Finance (No 1) Plc. The transaction securitises loans made to two housing associations, Springboard and Beacon, which in turn are secured on a portfolio of residential social housing. The vehicle is authorised to originate further loans itself, or to acquire assets of Greenwich NatWest. "We have assets that are potentially very fungible," said Paul Townsend, assistant director in asset securitisation at Greenwich NatWest. "It will not be a regular issuer, no more than once every 12 months, but we would like to see a growth factor. Above all we must be sure that there is no degradation of the pool."

CEVAL Alimentos, Brazil's leading soy product exporter, has secured $225m of three year financing, becoming the second major non-financial Brazilian corporate to tap the international markets since the January devaluation. Following in the footsteps of media company Globo, Ceval turned to the securitisation market to attract the cheapest possible financing at a time when the plain vanilla bond markets are shut to all but the best Latin corporates.

GMAC launched its first plain vanilla securitisation of dealer floor plan receivables since 1996 this week, taking advantage of scarcity to pique US interest, and along the way pulling in some international buyers too. Launched via special purpose vehicle GMAC/SWIFT 1999A, the triple-A rated $750m bond was sold at 12.5bp over Libor on a 4.99 year average life, slightly tighter than initial price talk of 13bp or 14bp over.

There are two fundamental approaches to valuing risky debt and associated instruments.

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When choosing risk management strategies, an institution should consider the trade-off between downside and upside potential.

SINGAPORE's Housing & Development Board (HDB) confirmed this week that it has mandated Citicorp as the arranger of its soon to be established S$2bn ($1.23bn) MTN programme. The US bank had been talked of as winner of the arranger's slot last month, completing a hat trick of mandates, following its launch of a S$300m deal for the IFC and S$300m deal for the Jurong Town Corporation (JTC).

THE HONG Kong market could be poised for a wave of January 'H' share offerings as Shandong International Power and Heilongjiang Agriculture race to become the first 'H' share to list in 1999. The moves come amid mildly improved sentiment following Hengan International's IPO and reduced volatility on the Hang Seng. Goldman Sachs holds the mandate for a $200m IPO for Shandong International Power following the dismissal of former joint lead Morgan Stanley Dean Witter, reportedly after strategist Barton Biggs made a number of remarks which displeased the Chinese government.

India The Indian government has announced plans to allow corporates to use proceeds from GDR to retire overseas debt. The government had been reluctant to allow the move because of the increased cost of debt in recent months. An official said there were now no restrictions on the use of GDR profits.